Gemini has selected Malta as its European operating hub in order to comply with the Markets in Crypto-Assets (MiCA) framework, which regulates the cryptocurrency sector in the European Union. This decision demonstrates Gemini’s commitment to meeting legal requirements and expanding its services. Malta is known for its favorable environment for fintech and digital asset innovation, and Gemini obtained a license for Virtual Financial Assets Services (VFA) in Malta in December 2024 to ensure compliance. This move also reflects Gemini’s efforts to support the local crypto economy.
Gemini’s Head of Operations for Europe, Mark Jennings, believes that the MiCA framework provides much-needed legal clarity for the crypto sector. He stated, “Our decision to establish Malta as our MiCA hub reflects our commitment to upholding regulatory standards, advancing innovation, and shaping the future of digital assets in Europe. We hope that it serves as a blueprint for crypto regulation globally.” By choosing Malta as its operating hub, Gemini aims to build trust among users and authorities and intends to attract local talent to improve its regional operations.
Gemini’s plan to expand in Europe involves using Malta as its operational base. The exchange began offering its services in France in November 2024 and has also registered as a Virtual Asset Service Provider (VASP) in several other European countries. While Ireland was previously Gemini’s operational base in Europe, they decided to relocate to Malta due to regulatory delays in Ireland. However, they maintain their Electronic Money Institution (EMI) license and office in Ireland to ensure smooth operations in different areas.
The MiCA framework is expected to have a significant impact on the crypto market in the European Union. It aims to provide legal clarity that has hindered the widespread adoption of cryptocurrency. Gemini hopes to lead in fostering trust and accelerating innovation through MiCA, thereby increasing its competitiveness in the European market and attracting more users. Additionally, MiCA offers a solid legal foundation for the growth of the digital asset trading and decentralized finance (DeFi) industries.
In addition to its growth, Gemini has faced challenges in other markets. The exchange officially closed all client accounts in Canada on December 31, 2024, following regulatory reforms by the Canadian Securities Administrators (CSA). The new rules required crypto trading platforms to sign a pre-registration agreement, which Gemini chose not to comply with, leading to the discontinuation of its operations in Canada. Users were given 90 days to withdraw their assets from the platform after receiving an email announcement on September 30, 2024.