Gemini, the cryptocurrency exchange founded by the Inklevoss brothers, is creating a dedicated center in Malta to comply with Europe’s crypto regulations.

Gemini announced that it has chosen Malta as a strategic center in order to comply with the European Union’s Crypto Asset Markets (MiCA) regulatory framework.

This development follows Gemini’s sixth European virtual asset service provider (VASP) registration from the Malta Financial Services Authority (MFSA) in December 2024.

According to Gemini, Malta offers an ideal environment to expand its European operations with its proactive approach towards fintech innovation and the crypto ecosystem. Jennings stated that Malta is the most suitable place to organize Gemini’s operations within the framework of MiCA.

Although Gemini has established a headquarters in Malta to comply with MiCA regulations, it has not yet received a MiCA license from financial regulators in Malta.

Jennings stated that there are two primary ways to obtain a MiCA license: “You either need to apply for a license from scratch in a new region, or you can upgrade existing VASP licenses to a MiCA license during the transition period.”

Jennings stated that this transition process is compatible with Gemini’s existing licensing infrastructure.

Gemini currently has VASP licenses in six countries in Europe, including Malta, France, Ireland, Spain, Italy and Greece. The company launched crypto asset services in this country in November 2024, thanks to its French license.

Jennings said the MiCA regulations make it possible to organize a unified customer onboarding process across Europe. “Thanks to MiCA, we were able to develop a scalable solution that supports Europe. “I see this not as a challenge but as an opportunity,” he said.

One of the main focuses in Gemini’s MiCA compliance strategy was to provide a custody service that complies with local regulations. Jennings pointed out that this is one of the biggest challenges for crypto exchanges operating globally.

“It is necessary to create a comprehensive infrastructure to provide a compatible storage service,” said Jennings, adding that Gemini has made great progress in this regard.

“This regulation provides the certainty our customers have long needed,” Jennings said, adding that MiCA makes regulations in Europe more transparent and robust.

Although there is increasing clarity in crypto regulations in Europe with MiCA, confusion regarding some stablecoins remains. Jennings acknowledged that there is still some uncertainty about MiCA’s handling of stablecoins.

For example, Circle, one of the major stablecoin issuers, received MiCA approval for its USDC stablecoin in 2023. However, USDT issuer Tether has opposed MiCA regulations.

This has led to speculation about the possibility of USDT being delisted as a “non-compliant stablecoin” across Europe.

Jennings stated that MiCA is an important step to resolve such contradictions in the field of regulation and said, “The fact that regulations in Europe have become more unified and harmonious is a great gain for the sector.”

He pointed out that Malta being a strategic center for Gemini will help the company strengthen its position in both the European and global markets.