EU Crypto Rules triggers backlash against high-speed truck licenses

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As Europe rolls out new MICA rules, major crypto companies line up to acquire licenses and operate across the EU. But some regulators are worried that things may be moving too fast.

Gemini, a crypto platform founded by billionaire twins Tyler and Cameron Winclevos, is about to receive a license in Malta, the smallest EU country, according to Reuters. This gives you a green light to work in all 27 member countries.

This is just weeks after MICA took effect, shortly after MALTA approved the OKX and Crypto.com licenses.

Malta’s rapid approval faces scrutiny

Malta’s rapid approval has raised eyebrows among EU regulators, particularly under the surveillance of the European Securities and Markets Agency (ESMA). The French AMF warns that weak surveillance could lead to a “race to the bottom.” One official raised concerns about whether countries with small regulatory teams like Malta could provide adequate surveillance.

ESMA is currently reviewing the Malta process and will release a report soon.

In response, Maltese regulators said they have issued four licenses so far, praised the speed for past experience and “a detailed understanding obtained over the years.” Maltese regulators said it follows strict money laundering rules. OKX also called the process strictly, saying compliance is a top priority.

Coinbase EyesLuxembourg License

Elsewhere, Luxembourg is expected to soon approve licenses for Coinbase, the first US crypto company, with the S&P 500. The team may have 200 staff in Europe, but plans to hire another 20 people in Luxembourg by the end of the year.

Luxembourg pushed back the claims that it was too tolerant of codes. It suggested that other countries may just be trying to beat crypto companies. In particular, the Coinbase move is seen as a set for Ireland, where central banks once compared Crypto to the Ponzi scheme.

The EU was split up due to the mica boom

At the heart of the problem is its curbing the trillion dollar crypto market. MICA is designed to place Crypto under the same regulatory standards as traditional finance, but applying the rules in different ways by countries could undermine the overall impact of Mica.

The country is still divided into the EU on how to enforce crypto rules. There will be ongoing consultations on giving more power to the ESMA. ESMA Chief Verena Ross wants stronger surveillance, but some countries are reluctant to increase their authority.

How these early licenses are handled could set a tone for how the EU will balance crypto growth with investor protection in the future.