Coinbase has obtained a Markets in Crypto Assets (MiCA) license from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF), enabling it to offer crypto services across the entire European Union. The U.S.-based exchange announced Friday that Luxembourg will now serve as its central European hub, replacing Ireland, where it had based its main operations since 2023.
What Is MiCA and Why It Matters
MiCA is a comprehensive regulatory framework designed to harmonize crypto regulations across all 27 EU member states. Fully effective since late last year, the rules aim to protect consumers and reduce risks associated with crypto investments following a series of industry scandals.
By securing a MiCA license, Coinbase becomes the first U.S. crypto exchange authorized under this framework. Gemini, owned by the Winklevoss twins, is expected to follow suit soon with a license based in Malta, which it chose as its EU hub earlier this year.
Coinbase’s CEO Brian Armstrong praised Luxembourg’s pro-business environment and regulatory clarity, emphasizing the country’s leadership role in the European crypto space. The decision to shift from Ireland was influenced more by Luxembourg’s “forward-thinking financial hub” status and its blockchain-friendly policies, rather than any shortcomings in Ireland.
Daniel Seifert, Coinbase’s vice president and regional managing director for EMEA, explained that Luxembourg has enacted four blockchain-related laws, whereas Ireland has yet to introduce any crypto-specific legislation.
Ongoing Investments in Ireland
Despite the move, Coinbase plans to continue investing in Ireland, with upcoming plans to expand its Dublin office by about 50 new jobs. Seifert himself has relocated from the U.K. to lead Coinbase’s Irish operations.
While Coinbase is among the largest exchanges to secure a MiCA license, it is not the first. Other players like Bybit, OKX, and BitGo have already obtained authorization to operate across the EU under the same framework.
Author’s Opinion
Luxembourg’s early adoption of blockchain-friendly laws clearly gives it a competitive edge in attracting crypto firms like Coinbase. For the EU to remain a global leader in digital finance, other member states need to follow Luxembourg’s proactive regulatory approach. Coinbase’s move signals a growing preference for jurisdictions that balance innovation with clear rules—an essential formula for fostering trust in crypto markets.
