Coinbase secures MiCA license, names Luxembourg as EU headquarters
Coinbase has secured a Markets in Crypto-Assets (MiCA) license from the Luxembourg Commission de Surveillance du Secteur Financier, which enables the exchange to offer crypto products across European Union countries.
The move signals mounting competition in the European crypto market, where other exchanges have also been pursuing registrations. OKX and Crypto.com secured MiCA licenses in January, followed by Bybit in May. Gemini is also on track to obtain a license in the region, according to a Reuters report.
Coinbase has named Luxembourg as its new European headquarters, citing the country's reputation as a progressive financial center in Western Europe. Bordered by Belgium, France and Germany, the country has been gradually advancing crypto regulations since 2019.
'Luxembourg is actively pursuing a whole-of-government approach to blockchain and DLT, and has passed four blockchain-related policies through the national legislature,' Coinbase said.
At the time of this writing, Coinbase shares are up 4.95% on the day of the announcement, rising to $309.92 from a close of $295.29 on Thursday, according to Google Finance.
In May, Coinbase announced a deal to acquire options trading platform Derebit for $2.9 billion. On May 19, the exchange became the first crypto company to join the S&P 500, an index of the 500 largest publicly traded companies in the United States. Crypto investing in Europe is rising
MiCA is a regulatory framework that seeks to standardize rules for the crypto industry within the European Union, protect crypto investors and enhance financial stability. It was adopted in May 2023 and came into full enforcement in December 2024.
Crypto investing in Europe is rising, with an estimated 10%-20% of European investors having some exposure to the nascent industry.
Utility is emerging as a key driver of crypto adoption rather than just capital appreciation, with 70% of crypto payments going to retail, food and beverages. Crypto usage on decentralized finance applications is also rising in Eastern Europe.
Source: https://cointelegraph.com/news/coinbase-secures-mica-license-names-luxembourg-as-eu-headquarters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
4 hours ago
- Crypto Insight
Norway's government explores crypto mining ban amid energy supply concerns
The government of Norway is considering a temporary ban on crypto mining in the country in an effort to 'free up power, network capacity and area for other purposes.' In a Friday notice, the Norwegian government said it would be conducting an investigation in autumn that could result in a temporary ban on crypto mining data centers. Officials said they had the authority to enforce such a ban under Norway's Planning and Building Act, which includes provisions on allocating energy. 'It is uncertain how big a problem crypto mining will become in Norway in the future,' the notice reads. 'The registration requirement in the new data center regulations will provide increased knowledge about the scope of data centers that mine cryptocurrency.' Like many countries in Europe, Norway's residents have faced increasing costs on electricity amid Russia's war with Ukraine and sanctions impacting the region's supply of oil and gas. Locals in Norway have previously petitioned for crypto mining operations to shut down over noise concerns. Mining bans proposed in response to environmental concerns, noise Norway would not be the first country to consider a ban on cryptocurrency mining. In January, Russia began imposing a ban in 10 regions as part of efforts to limit blackouts and reduce energy consumption. China, which had been one of the most significant sources of crypto mining before 2021, faced a blanket ban, which drove many operations to US states like Texas. Though lawmakers in the US government have spoken out against mining due to concerns over energy use, the practice is still legal in most jurisdictions and states, making the country one of the biggest contributors to the global Bitcoin hashrate. Source:
Crypto Insight
4 hours ago
- Crypto Insight
The anatomy of a crypto scam: How to stop and prevent common threats
In the vast world of crypto, the line between opportunity and deception is razor-thin. The traits that make digital assets attractive — anonymity, independence and rapid transferability — also create fertile ground for fraudsters. Scams are woven into the fabric of the crypto ecosystem, exploiting trust, greed and fear. Unlike traditional financial systems with regulators, the decentralized crypto space allows opportunistic actors to thrive. Understanding the structure of these scams is crucial. Just as forensic investigators dissect crime scenes, analyzing the architecture of crypto scams reveals the calculated maneuvers used to siphon funds. Each scam follows a familiar blueprint — preying on human psychology and the lack of regulation in decentralized finance (DeFi). Breaking down these frameworks provides valuable insights, helping investors and institutions recognize warning signs and fortify defenses in this high-risk environment. The hook — perfect bait for every target The first stage of any scam begins with the hook: a carefully crafted message or offer designed to capture the victim's attention and trigger an emotional response. Before setting the hook, scammers often invest significant time gathering information about their targets. They sift through leaked emails, phone numbers and other personal information to build a profile, crafting a personalized scam to increase the likelihood of success. By incorporating specific details — such as the target's language or personal information — the fraudsters add a layer of credibility that creates trust. Once armed with their target's details, scammers move to the hook, preying on curiosity, trust and the promise of easy profits. Whether it's a phishing email, a fake account alert or an investment opportunity promising 'guaranteed returns,' the goal is to present something too enticing to ignore. A common example is the fake exchange account scam, in which victims believe they have been given accidental access to a large sum of unclaimed money. The scam begins with an unexpected message stating, 'Your account has been created,' accompanied by login credentials for an account/wallet on a cryptocurrency exchange. The victim logs in and finds a balance of $10,000 waiting for them. Delight is replaced by greed as they attempt to withdraw the funds. But there's a catch: the system requires a small deposit — perhaps $1,000 — to unlock the full amount. Once the fee is paid, the scam becomes clear: the exchange was fake, and the deposit is now in the hands of scammers. This scam works because it preys on greed and the allure of a 'lucky break.' Victims become so focused on the reward that they ignore the warning signs, such as bad grammar in the message or lack of domain security on the website. The setup — establishing trust and gaining access After successfully hooking a victim's attention, scammers focus on building trust. This phase involves cultivating a sense of legitimacy and familiarity with scammersgoing to great lengths to establish a personal connection. Scammers may even employ tactics like investment scams, where they spend weeks or months grooming their victims, engaging them in friendly conversations and feigned relationships to create a strong bond. Only once this trust is deeply established do they introduce the fraudulent investment or fake platform, luring victims to transfer funds that they will never see again. The SIM swap attack is another devastating example whereby scammers exploit technological trust. By gathering personal information that is available publicly on social media, such as birthdays, pet names or even favorite sports teams, the fraudster can impersonate the victim. They then contact the target's mobile service provider, armed with these personal details, and request a phone number transfer to a SIM card in their possession. With control over the victim's phone number, they can bypass two-factor authentication and gain access to crypto wallets, bank accounts and emails. The setup phase succeeds because scammers exploit both technological trust and personal familiarity. Humans are, by nature, social creatures, and scammers exploit this characteristic by building relationships that appear genuine. In the SIM swap, scammers manipulate trust in technology, using the victim's digital security habits against them. The execution — draining funds through hidden mechanisms Once access is gained, scammers move to the execution phase, where they drain funds using hidden mechanisms. This is the most devastating stage, as the carefully designed setup ends in significant financial losses for the victim before they've even realized something is wrong. For example, in 2018, a victim boarded a short flight, unaware that scammers had executed a SIM swap while he was offline. By the time the plane landed, funds had been siphoned from his crypto wallet. With control over his phone number, the scammers were able to bypass two-factor authentication (2FA) and gain access to everything. Another good example is the poison wallet tactic which targets large over-the-counter (OTC) platforms. Scammers trick targets into sending small amounts of funds to fraudulent addresses. They do this by creating wallet addresses that look very similar to the initial and final characters of the victim's legitimate address. They then send a small transaction to the victim, hoping the fake address will show up in the user's transaction history. When the victim next makes a transaction, they may unwittingly select the fake address from their history. In this tactic, scammers take advantage of automation and human error. Bots monitor wallet balances, triggering automatic withdrawals when a balance crosses a certain threshold. Meanwhile, the use of familiar-looking addresses plays on the victim's carelessness and trust in their own records. The stolen amounts might be small per transaction, but cumulatively, they siphon off thousands daily, all going virtually unnoticed.
Crypto Insight
6 hours ago
- Crypto Insight
Coinbase secures MiCA license, names Luxembourg as EU headquarters
Coinbase has secured a Markets in Crypto-Assets (MiCA) license from the Luxembourg Commission de Surveillance du Secteur Financier, which enables the exchange to offer crypto products across European Union countries. The move signals mounting competition in the European crypto market, where other exchanges have also been pursuing registrations. OKX and secured MiCA licenses in January, followed by Bybit in May. Gemini is also on track to obtain a license in the region, according to a Reuters report. Coinbase has named Luxembourg as its new European headquarters, citing the country's reputation as a progressive financial center in Western Europe. Bordered by Belgium, France and Germany, the country has been gradually advancing crypto regulations since 2019. 'Luxembourg is actively pursuing a whole-of-government approach to blockchain and DLT, and has passed four blockchain-related policies through the national legislature,' Coinbase said. At the time of this writing, Coinbase shares are up 4.95% on the day of the announcement, rising to $309.92 from a close of $295.29 on Thursday, according to Google Finance. In May, Coinbase announced a deal to acquire options trading platform Derebit for $2.9 billion. On May 19, the exchange became the first crypto company to join the S&P 500, an index of the 500 largest publicly traded companies in the United States. Crypto investing in Europe is rising MiCA is a regulatory framework that seeks to standardize rules for the crypto industry within the European Union, protect crypto investors and enhance financial stability. It was adopted in May 2023 and came into full enforcement in December 2024. Crypto investing in Europe is rising, with an estimated 10%-20% of European investors having some exposure to the nascent industry. Utility is emerging as a key driver of crypto adoption rather than just capital appreciation, with 70% of crypto payments going to retail, food and beverages. Crypto usage on decentralized finance applications is also rising in Eastern Europe. Source:
