Gemini has received regulatory approval from the Malta Financial Services Authority (MFSA). This allows it to offer crypto derivatives products across the European Union (EU).
This approval came through the acquisition of a Markets in Financial Instruments Directive II (MiFID II) license. For context, MiFID II is a comprehensive EU regulation that governs investment services across all EU and European Economic Area (EEA) countries. With this license, Gemini can now “passport” its services into other EU member states without needing separate approvals in each country.
Gemini’s Head of Europe, Mark Jennings, confirmed the development and said that the company will now begin offering perpetual futures and other crypto derivatives to both retail and institutional users across Europe. This expansion allows users in the EU to access advanced trading products directly through Gemini’s platform.
The announcement follows a significant move by Coinbase, which just acquired Deribit, a leading crypto derivatives exchange, in a $2.9 billion deal. This highlights the increasing competition among major exchanges to dominate the growing crypto derivatives market.
Coinbase had earlier obtained its own MiFID II license by acquiring the Cyprus-based investment firm BUX and rebranding it as Coinbase Financial Services Europe Ltd. Kraken and Crypto.com have also made similar moves, securing regional licenses to offer derivatives or Contract-for-Difference (CFD) products in Europe.
These strategic moves are in response to the rapid growth of the crypto derivatives market. According to data from Coinglass, over $240 billion in derivatives were traded in the past 24 hours alone, marking a 4.16% increase from the previous day. In the first quarter of 2024, total crypto derivatives trading volume reached $21 trillion, with an average daily volume of $233 billion.
With the latest license from Malta, Gemini has positioned itself as a strong competitor in this fast-growing sector. It now joins the ranks of Coinbase, Kraken, and others racing to serve European traders in the expanding crypto derivatives space.
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