Coinbase strengthens its position in the EU with a MiCA hub, while Binance faces regulatory obstacles
Crypto exchange Coinbase officially opened a new office in Luxembourg on June 24, announcing the creation of a European hub for full compliance with MiCA rules. This is a strategic move that demonstrates a deep understanding of the regulatory environment in the region. While Coinbase confidently establishes itself, its main competitor Binance continues to struggle for a license, facing serious difficulties.
Events of recent weeks clearly illustrate that transparency and experience in dealing with government authorities are becoming key factors for legal operations within the European Union after July 1 — the date MiCA rules come into effect. Organizations that successfully complete the compliance procedure ahead of competitors gain access to a market of 27 countries. Other industry participants risk losing this promising market forever.
Coinbase Establishes Itself in Luxembourg
Coinbase received its MiCA license from the Luxembourg Commission for the Supervision of the Financial Sector back in June 2025 — more than a year before the new rules took effect. The exchange already had national licenses in six EU countries, including Germany and France. Since 2021, the company has been traded on the Nasdaq exchange, and regulators have had access to its audited reports for several years.
One license covers over 450 million residents of the European Union. Coinbase Luxembourg S.A. has already been registered in the ESMA register, joining the list of companies authorized in the EU under MiCA. The grand opening of the new office took place with the participation of Director of Corporate Policy Faryar Shirzad and Luxembourg's current Minister of Finance Gilles Roth.
"Luxembourg has become a leading hub for the institutional crypto industry and tokenization in the EU," he stated.
Binance Under Pressure
Binance chose a different path. This week, the exchange confirmed that it failed to obtain a license in Greece and was left out of the ESMA register. Regulators have long been closely monitoring Binance. In 2023, the company pleaded guilty in the U.S. to violations related to money laundering and sanctions. Binance paid over $4.3 billion for its misconduct — one of the largest fines in U.S. business history. Founder Changpeng Zhao also pleaded guilty and stepped down as CEO.
Now Binance plans to apply for approval in another EU country. The company claims it meets MiCA requirements and has a staff of approximately 1,500 compliance employees.
"Binance is not leaving Europe," said Jillian Lynch, head of the platform for Europe and the UK.
What's Next
Only a few days remain until the final deadline for meeting regulatory requirements. To date, over 230 crypto enterprises have successfully completed inspections. They retain the legal right to continue serving European users. For Binance and others that have not made it, the stakes are high: the EU market is one of the most attractive in the world.
Expert opinion: The situation with Coinbase and Binance is a vivid example of how strategic planning and transparency pay off in a strict regulatory environment. Coinbase, by investing in compliance early, not only protected its position but also gained a competitive advantage. Binance, despite claims of compliance, risks losing market share due to past mistakes. In the long term, regulatory trust will become the main asset for crypto exchanges.