Major digital asset exchange platforms Coinbase and Gemini preparing to secure licenses for EU operations
The European Union's regulatory response to the dynamic nature of the cryptocurrency sector, the MiCA framework, is aimed at providing much-needed clarity for the industry. Despite praises for its efforts, the framework still faces criticism due to remaining ambiguities, according to industry critics.
The MiCA framework, an acronym for Markets in Crypto Assets, is a regulatory framework designed to oversee the cryptocurrency sector within the EU. Major players in the sector, such as Bybit and Binance, have already taken steps to comply with the MiCA framework.
Bybit, a cryptocurrency exchange, has received a license in Austria to operate as a custodian in the European Union under the MiCA framework. Binance, another prominent platform, has adapted its procedures in Poland to comply with MiCA rules.
Coinbase and Gemini, two well-known cryptocurrency exchanges, are expected to follow suit. Coinbase is likely to obtain authorization through Luxembourg, while Gemini is expected to receive its license from Malta.
Coinbase's spokesperson did not confirm the details but praised Luxembourg as a "well-respected global financial center." Similarly, the spokesperson for Bybit was not available for comment, but the platform's compliance with MiCA is evident in its operations.
The regulatory approval for these platforms is a significant step towards ensuring the safety and transparency of the cryptocurrency sector within the EU. The MiCA framework addresses the dynamic nature of the sector, providing a robust regulatory response to its ever-evolving landscape.
While the MiCA framework has been praised for its efforts to provide regulatory clarity, critics argue that it still contains ambiguities. These concerns, however, have not deterred major cryptocurrency platforms from complying with the framework.
As the cryptocurrency sector continues to grow, it is likely that more platforms will seek regulatory approval under the MiCA framework. This will not only ensure the safety and transparency of the sector but also foster trust and confidence among investors and regulators alike.
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