Coinbase strengthens its position in the EU through the MiCA hub, while Binance faces regulatory challenges.
Cryptocurrency exchange Coinbase officially opened a new office in Luxembourg on June 24, establishing a European hub to ensure full compliance with MiCA (Markets in Crypto-Assets) regulations. This move demonstrates the company's strategic approach to regulation in the region, while its main competitor, Binance, continues to struggle to obtain a license.
The events clearly highlight the key role of transparency and experience in dealing with government authorities. These factors determine the right to legally operate within the European Union after July 1, the date when MiCA rules come into effect. Organizations that successfully complete the compliance procedure ahead of their competitors will be able to freely serve clients in all 27 bloc countries. Other industry participants risk losing this promising market forever.
Coinbase strengthens its position 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. Coinbase already held 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 more than 450 million residents of the European Union. Coinbase Luxembourg S.A. has already been registered with the ESMA (European Securities and Markets Authority), joining the list of companies authorized in the EU under MiCA. The grand opening of the new office was attended by Director of Corporate Policy Faryar Shirzad, as well as Luxembourg's current Minister of Finance Gilles Roth.
"Luxembourg has become the leading hub for the institutional crypto industry and tokenization in the EU," Shirzad 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 American 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 officers.
"Binance is not leaving Europe," said the platform's head for Europe and the UK, Gillian Lynch.
What's next
Only a few days remain until the final deadline for meeting regulatory requirements. To date, more than 230 cryptocurrency enterprises have successfully completed inspections. They retain the legal right to continue serving European users.
Expert opinion: The situation clearly demonstrates that regulatory transparency and proactive engagement with authorities are becoming key competitive advantages in post-MiCA Europe. Coinbase, leveraging its status as a public company and years of compliance experience, gains a significant edge over Binance, which is still trying to overcome the consequences of past regulatory violations. Investors should closely monitor developments: Binance's success in obtaining a license could seriously shift the balance of power in the European market.