Cryptocurrency exchange Gemini has received in-principle approval from Malta’s financial regulator for an Investment Firm license, a step toward expanding its services across Europe. The approval, granted by the Malta Financial Services Authority (MFSA), positions Gemini to offer regulated futures and options in the European Union and European Economic Area under MiFID II, once final approval is secured.
Strategic Move to Establish a European Hub
The license application is part of Gemini’s broader strategy to establish Malta as its European hub. The company has also applied for authorization under the Markets in Crypto-Assets (MiCA) framework, which would allow it to continue providing crypto services in the region amid evolving regulatory requirements.
“Receiving in-principle approval for an Investment Firm license is a key milestone in our commitment to providing a best-in-class offering for retail and institutional investors,” Mark Jennings, Gemini’s head of Europe, said in a statement. He noted a rising demand for crypto derivatives, particularly among institutional investors.
Potential Expansion of Crypto Derivative Offerings
If granted full approval, the license would enable Gemini to offer perpetual futures contracts to advanced traders and institutions. This would expand its current offerings, which include a spot exchange with over 90 digital assets, the ActiveTrader™ platform with 80+ trading pairs, and an over-the-counter (OTC) trading desk.
Gemini's move comes amid increasing regulatory scrutiny of cryptocurrency firms in Europe. The MiFID II framework typically applied to traditional financial markets, sets stringent standards for investment services, including transparency and investor protection measures. By seeking approval within this framework, Gemini aims to align with European regulations governing financial instruments.
Next Steps Toward Full Approval
The in-principle approval marks a critical step in Gemini’s 2025 European expansion plan. However, the company must meet additional pre-authorization requirements before securing its final license from the MFSA. The exchange’s next steps will involve working closely with regulators to ensure compliance with all necessary conditions.
Gemini’s pursuit of regulatory approval follows broader trends in the cryptocurrency industry, where firms are increasingly seeking licenses to operate within clear legal frameworks. With its Malta-based licensing efforts, Gemini is positioning itself to tap into the growing European market for regulated crypto derivatives while strengthening its institutional offerings.
