By Nermeen Nabil Khear 
Gemini has received in-principle approval from the Malta Financial Services Authorities for an Investment Firm license. The license will allow the cryptocurrency exchange to offer regulated futures and options throughout Europe.
When the license is granted, Gemini will be able to offer perpetual futures contracts in the European Economic Area (EEA) to advanced traders, per the announcement. The EEA consists of the European Union member states and Iceland, Liechtenstein, and Norway. Gemini is based in the United States.
Gemini will have licenses for a wide range of services in Europe
Digital asset futures and options are regulated under the Markets in Financial Instruments Directive 2018 (MiFID II) regulatory framework rather than Markets in Crypto Assets (MiCA) regulations because they qualify as financial instruments.
“Interest in crypto derivatives, particularly from institutions, has increased significantly in recent years, as crypto matures into a recognised asset class,” Gemini Head of Europe Mark Jennings said in an announcement on the company’s blog. He called Gemini’s in-principle Investment Firm license “a key milestone.”
Gemini chose Malta as its European hub for MiCA purposes after receiving a Virtual Financial Assets Service license in December. It began operating there in January after installing a new leadership team. Gemini also had VASP (virtual asset service provider) licenses in France, Greece, Italy, Spain and Ireland.
Kraken, another U.S.-based cryptocurrency exchange, received a MiFID II license earlier in February by acquiring a firm in Cyprus that held the licensing. Companies have the option of receiving MiCA licenses directly or upgrading their existing VASP to MiCA.
Licensing is an ongoing quest
Gemini’s attempt to introduce a Bitcoin futures contract in the United States ran into serious roadblocks. The exchange was investigated by the Justice Department in 2017 and 2018 for price manipulation suspicions.
No charges were filed in the criminal investigations, but the Commodity Futures Trading Commission (CFTC) sued Gemini in 2022 for misrepresenting its ability to prevent price manipulation. Gemini paid the CFTC $5 million in January to settle the allegations, without admitting wrongdoing.
Nonetheless, Bloomberg reported earlier in February that Gemini was considering conducting an initial public offering this year.
Gemini received in-principle approval for a Major Payment Institution license in Singapore in October, not long after withdrawing from Canada entirely, along with other foreign crypto exchanges, in response to new regulatory requirements.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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