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 fintech and digital asset innovation, making it a favorable location for Gemini. In December 2024, Gemini obtained a license for Virtual Financial Assets Services (VFA) in Malta, ensuring compliance with relevant regulations and supporting the growth of the local crypto economy.
Gemini’s Head of Operations for Europe, Mark Jennings, emphasized the importance of the MiCA framework in providing legal clarity for the crypto sector. He stated that choosing Malta as their MiCA hub reflects their dedication to regulatory standards, innovation, and the future of digital assets in Europe. Gemini hopes that their decision can serve as a model for global crypto regulation. By establishing Malta as their operating hub, Gemini aims to build trust among users and authorities, as well as attract local talent to enhance their regional operations.
In addition to regulatory compliance, Gemini remains focused on driving innovation in the crypto sector. Their decision to make Malta their operational base aligns with their vision of a transparent and reliable digital asset trading system. Malta provides Gemini with an excellent opportunity to expand their services across Europe. As part of their plan to increase their presence in Europe, Gemini has started offering services in France and has registered as a Virtual Asset Service Provider (VASP) in other European countries. Although Ireland was their previous operational base in Europe, Gemini chose to relocate to Malta due to regulatory delays. However, they have maintained their Electronic Money Institution (EMI) license and office in Ireland to ensure smooth operations in different areas.
The MiCA framework is expected to bring significant changes to the crypto market in the European Union by providing legal clarity. Gemini believes that regulatory uncertainty has deterred many potential crypto investors, as highlighted in their 2024 “State of Crypto” research. Through MiCA, Gemini aims to foster trust, accelerate innovation, and increase their competitiveness in the European market. Moreover, MiCA establishes a robust legal foundation for the growth of digital asset trading and decentralized finance (DeFi) industries.
Despite its growth, Gemini has faced challenges in other markets. The exchange officially closed all client accounts in Canada on December 31, 2024, due to regulatory reforms introduced by the Canadian Securities Administrators (CSA). The new rules required crypto trading platforms to sign a pre-registration agreement, which Gemini decided not to comply with, resulting in the discontinuation of their operations in Canada. Users were given a 90-day window to withdraw their assets from the platform following the announcement on September 30, 2024.