Coinbase Gains Full EU Crypto Licence Through Luxembourg, Shifting European Base From Ireland

Coinbase Secures EU-Wide Crypto License and Shifts European Hub to Luxembourg

Coinbase has successfully obtained regulatory approval to operate its cryptocurrency services throughout the European Union, marking a significant step in its European expansion.

The U.S.-based crypto exchange received its Markets in Crypto Assets (MiCA) licence from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), enabling it to offer services across all 27 EU member states.

Why Luxembourg Over Ireland for Coinbase’s EU Operations?

Initially, Coinbase chose Ireland as its central European base in 2023, making a public push for its presence there.

However, the company later reversed this decision, citing Luxembourg’s more progressive and comprehensive regulatory environment as a better fit.

Daniel Seifert, Coinbase’s vice president and regional managing director for EMEA, explained that “Luxembourg presented a highly compelling option” due to its “whole-of-government” approach to blockchain and four blockchain-specific laws passed in recent years.

In contrast, Ireland currently lacks crypto-specific legislation, despite Coinbase’s ongoing investment plans there, including the imminent addition of around 50 jobs in Dublin.

Seifert has also relocated personally to Ireland to lead Coinbase’s operations there.

What Does MiCA Mean for Crypto Firms Like Coinbase?

The MiCA framework, which came into force in June 2023, aims to create a harmonised legal structure for crypto asset providers across the EU.

A licence granted in one member state allows firms to "passport" their services EU-wide, simplifying cross-border operations.

While individual countries retain limited powers to block a firm’s activities on specific legal grounds, generally, a licensed company cannot be stopped from offering crypto services in any EU market.

For Coinbase, the MiCA licence means consolidating its previously separate licences in countries such as Germany, France, Ireland, Italy, the Netherlands, and Spain under one framework, broadening access to regulated and secure crypto services for millions of Europeans.

Is There Concern Over Regulatory ‘Race to the Bottom’?

The choice of Luxembourg as a licensing hub follows a trend where crypto firms gravitate towards jurisdictions perceived as more accommodating or less stringent.

Other major players like Gemini, OKX, Bitstamp, and Crypto.com have registered in Malta or Luxembourg, countries known for lighter regulatory enforcement compared to larger EU economies.

However, this has led to criticism.

Peter Curk, CEO of U.K.-based ICONOMI, warned that this could prompt a "race to the bottom" in regulatory standards, diluting consumer protection and weakening trust across borders.

He said,

“The debate isn’t just about licenses, it’s about the EU’s collective reputation in digital finance.”

Malta’s licensing processes, for example, are under review by the European Securities and Markets Authority following incidents like the $1.2 million fine imposed on OKX for past anti-money laundering breaches.

How Does Coinbase See Europe’s Crypto Future?

Brian Armstrong, Coinbase’s CEO, described the MiCA licence and Luxembourg’s approach as a strong foundation for crypto’s future in Europe.

He told CNBC,

“Coinbase is all in on Europe, and we’re advocating for crypto’s future across the continent. MiCA has set the standard, and Luxembourg is leading the way with its pro-business climate and thoughtful approach to regulation.”

This move places Coinbase among the largest crypto firms to receive MiCA approval, intensifying competition in a European market where players like OKX, Crypto.com, and Bybit are already licensed.

Is EU’s Crypto Regulation Ready for Its Own Challenges?

As Coinbase and others capitalise on MiCA’s single-market licence, the broader question emerges: will the EU’s unified framework truly harmonise crypto regulation, or will it expose vulnerabilities through uneven enforcement?

The model encourages registration in member states with less regulatory scrutiny, risking inconsistent oversight across the bloc.

While it promises easier market access and consumer safeguards on paper, the potential for regulatory arbitrage and diluted protections could test the EU’s credibility in digital finance.

The future of trust in crypto across Europe hinges on delicately balancing innovation with robust supervision.