Cryptocurrency exchange Gemini has received in-principle approval from the Malta Financial Services Authority (MFSA) for an Investment Firm licence under the Markets in Financial Instruments Directive (MiFID II). This approval allows Gemini to offer regulated crypto derivatives, including perpetual futures, across the European Economic Area (EEA), marking a significant step in its European expansion.
Strengthening European Presence with New Licence
The approval is a key milestone for Gemini, founded by the Winklevoss twins, as it bolsters its presence in Europe. Previously, the exchange secured a Virtual Financial Assets (VFA) Service Licence in Malta, enabling it to operate under the Markets in Crypto-Assets (MiCA) framework. However, that licence did not permit the exchange to offer derivatives trading. The newly acquired MiFID II licence fills this gap, paving the way for Gemini to legally offer futures and options products within the region.
Mark Jennings, Gemini’s Head of Europe, emphasized the growing institutional interest in crypto derivatives, noting that the market is maturing as crypto assets gain wider acceptance. This development follows a broader industry trend, with rivals like Coinbase and Kraken also securing MiFID II licences to offer similar products.
Expansion Amid IPO Speculation
Gemini’s move into crypto derivatives comes at a pivotal time, as the company is reportedly exploring an Initial Public Offering (IPO) in the U.S. The decision to expand its product offerings signals the exchange’s ambition to solidify its position in the competitive European market.
Additionally, Gemini’s presence in France aligns with the upcoming MiCA regulations, positioning the exchange for further expansion across the European Union.
As the crypto derivatives market gains traction, Gemini’s MiFID II licence allows the platform to cater to institutional investors seeking more sophisticated crypto products, reinforcing its commitment to providing a regulated, professional-grade trading environment.
