Coinbase’s MiCA License Unlocks EU Markets and Fuels Global Ambitions

Coinbase Moves HQ to Luxembourg

The move gives Coinbase access to over 450 million people under a single regulatory framework. It also marks a strategic shift as the company makes Luxembourg its official European headquarters, moving from its previous base in Ireland.

MiCA, fully implemented in December 2024, provides a unified set of rules for digital asset companies operating in Europe. It focuses on consumer protection, market stability, and risk transparency. With this license, Coinbase joins the ranks of OKX, Crypto.com, and Bybit, which have also been approved under the framework.

Previously, Coinbase held separate licenses in six EU nations. The MiCA license consolidates these, allowing for more efficient operations and reducing costs related to compliance. Following the news, Coinbase’s stock (COIN) rose by 3.2%, closing at $305—an indication of investor confidence in the firm’s European strategy.

Luxembourg has emerged as a crypto-friendly jurisdiction. The country has passed four blockchain-specific laws and embraced a government-wide approach to distributed ledger innovation. According to CEO Brian Armstrong, Luxembourg’s clarity and progressive stance made it the ideal hub for Coinbase’s European operations.

In contrast, Ireland has struggled to define its crypto regulatory framework. While Coinbase retains its e-money license there, delays around crypto-specific rules nudged the firm toward more proactive territory. Coinbase now plans to hire over 20 new compliance and support staff in Luxembourg before the end of the year.

The shift has sparked backlash in Ireland. Coinbase employs more than 100 people in Dublin, and some crypto advocates there expressed disappointment on social media. Still, the company confirmed it will maintain and expand its Irish presence, with 50 additional roles expected in 2025.

The MiCA license is one part of Coinbase’s global licensing push. Over the past six months, the firm has added major approvals, including a Virtual Asset Service Provider (VASP) registration in the UK. This made Coinbase the largest registered VASP in the country. It has also received regulatory clearance in Argentina and joined India’s Financial Intelligence Unit.

Insiders suggest Coinbase is targeting additional licenses in Singapore and Australia, where crypto adoption continues to rise. The Asia-Pacific region is projected to reach over 300 million crypto users by 2027.

Coinbase’s international push comes as regulators around the world tighten their grip on digital assets. In the U.S., the company has backed the GENIUS Act, passed in 2025, which creates a federal legal framework for stablecoins.

Meanwhile, competitors like Gemini and Binance are pursuing their own licensing strategies across Europe.

Growth Strategy and Market Share

Coinbase aims to expand its European user base from 14 million in 2024 to 50 million by 2026. The MiCA passporting feature enables the company to offer its full product suite across all EU markets without needing individual country approvals.

Paybis data shows crypto trading volumes in the EU surged by 70% in Q1 2025, as both retail and institutional investors sought out regulated platforms. Coinbase’s real-time USDC settlement for merchants and its $2.9 billion acquisition of options platform Deribit position it to meet rising demand.

Bitedge’s analysts estimate that Coinbase could control up to 20% of the EU’s $1.2 trillion crypto market by 2027, if it maintains current momentum.

Coinbase isn’t the only exchange eyeing Europe. OKX and Crypto.com are expanding from Malta, while Bybit is scaling operations from Austria. However, Coinbase’s U.S. origins, S&P 500 inclusion (achieved in May 2025), and global brand recognition give it a unique advantage.

Still, challenges remain. MiCA’s phased rollout may force delistings of non-compliant stablecoins by mid-2026. Additionally, differences in how national regulators apply MiCA rules could create friction.

Some officials have raised concerns about a regulatory “race to the bottom,” particularly in smaller states like Luxembourg and Malta, which are moving quickly to approve licenses.

A Defining Moment for Crypto in Europe

With this license, Coinbase isn’t just expanding, but also making a statement. The company is aligning itself with Europe’s push for structured, compliant digital markets. As Chief Policy Officer Faryar Shirzad noted, this is about “building trust and unlocking economic freedom.”

Coinbase’s approach reflects a long-term strategy: serve global markets under clear rules, win institutional trust, and become the go-to platform for regulated crypto trading.

As Europe sharpens its crypto laws and other regions race to catch up, Coinbase’s Luxembourg hub
may become a blueprint for how to scale in the age of regulated digital finance.