Coinbase Becomes First U.S. Exchange To Secure MiCA License In Luxembourg

Moving to Luxembourg under MiCA gives Coinbase a clear, unified regulatory framework to offer services across all 27 EU states. The exchange said it chose Luxembourg for its forward‑looking laws and plans to expand its team in Dublin.

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Meghna Chowdhury
Meghna Chowdhury
Meghna is a Journalism graduate with specialisation in Print Journalism. She is currently pursuing a Master's Degree in journalism and mass communication. With over 3.5 years of experience in the Web3 and cryptocurrency space, she is working as a Senior Crypto Journalist for UnoCrypto. She is dedicated to delivering quality journalism and informative insights in her field. Apart from business and finance articles, horror is her favourite genre.

Coinbase has won a Markets in Crypto Assets license from Luxembourg’s financial regulator and will shift its regional headquarters from Ireland to Luxembourg.

First U.S. Exchange To Secure MiCA License 

The move, announced this week, gives Coinbase the green light to offer digital asset services across all 27 EU member states under the new MiCA rules. 

The company said it chose Luxembourg for its forward‑looking laws and plans to expand its team in Dublin at the same time.

Luxembourg License Approval

Luxembourg’s Commission de Surveillance du Secteur Financier permitted Coinbase to operate across the entire European Union. 

The Markets in Crypto Assets regime is the first comprehensive EU‑wide framework for digital assets. By securing this license, Coinbase can provide trading, custody and other services under a clear legal structure.

Shift from Ireland

Coinbase will move its main European base from Dublin to Luxembourg in the coming months. Daniel Seifert, Coinbase’s vice president for EMEA and managing director for the region, said the decision was not a criticism of Ireland’s business climate. 

Instead, he pointed to Luxembourg’s four blockchain‑focused laws as the key advantage. Ireland has yet to pass rules specifically aimed at crypto firms.

Strengthening Dublin Presence

Despite relocating its headquarters, Coinbase will keep a large footprint in Ireland. The exchange plans to hire about 50 new staff in Dublin to support operations and compliance. 

Seifert himself will move to Ireland to lead the expanded Irish team. Coinbase said the city remains an important hub for its engineering and support functions.

Market Reaction and Stock Gains

Investors welcomed the news. On Friday morning, Coinbase shares rose more than 3.5 % in early trade, making it one of the top gainers on Stocktwits.

Over the week, the stock climbed over 20 %, driven in part by US stablecoin legislation moving through the Senate. Year to date, Coinbase stock is up 18 %, and it has gained 27 % over the past 12 months.

Also Read: Stablecoin Startup Ubyx Raises $10M Seed Round Led by Galaxy Ventures and Coinbase

CEO’s Message on Europe

Brian Armstrong, Coinbase’s chief executive, said the firm is fully committed to Europe’s crypto future. He noted that the EU market is vital to Coinbase’s global growth plans.

The new licence and hub move underline the exchange’s belief that clear rules will help the industry thrive.

Warning on Market Risks

Alongside this, Coinbase issued a report on rising risks in the crypto market. The company highlighted private transit capital vehicles, which have issued convertible bonds to buy crypto assets. 

If prices fall sharply and these firms cannot refinance their debt, they might have to sell large holdings. Such forced sales could put downward pressure on markets and hurt investors.

Balancing Growth and Caution

Coinbase’s push into Europe comes at a time of rapid change in crypto rules and market dynamics. 

By securing a MiCA licence, the company ensures it can serve EU clients under a harmonised legal framework. At the same time, its own warnings show it remains alert to potential shocks in the sector.

With its new license and headquarters in Luxembourg, Coinbase cements its position as a leading crypto service provider in Europe. The move brings regulatory clarity and a stronger European base while retaining a key role for Dublin.

Also Read: JPMorgan Pilots JPMD Deposit Token On Coinbase’s Base Network Amid GENIUS Act Passing

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