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Gemini, a cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has announced its achievement of obtaining a MiFID II license from Malta. This license allows the company to offer derivative products across the European Economic Area (EEA). With this license, Gemini can now introduce various derivative products, particularly perpetual futures, within the European Union’s 27 countries as well as Iceland, Liechtenstein, and Norway. The Malta Financial Services Authority (MFSA) issued this significant license to Gemini, marking a notable development for the company.
Entering the European Derivatives Market
Securing the license marks a crucial step for Gemini, enabling the firm to offer derivatives to both individual and institutional clients. Although Gemini declared its readiness to provide these products upon meeting certain conditions, specific details regarding these conditions were not disclosed. Additional clarifications were sought from Gemini, but no response was available when the article was published.
The introduction of derivative products represents a new revenue stream for cryptocurrency exchanges. Several major exchanges have recently broadened their operations within this sector. Gemini is aligning its strategy in Europe to keep pace with this trend, indicating its commitment to expanding its derivatives offering in the region.
Competitive Moves by Rival Exchanges
Gemini’s innovative move reflects the growing competition in Europe. In a similar vein, cryptocurrency exchange Kraken entered the European derivatives market by acquiring a Cyprus-based investment firm and obtaining a MiFID license earlier this year. By following Kraken’s lead, Gemini aims to establish itself in the European derivatives market.
Meanwhile, Coinbase has made a significant acquisition to bolster its growth in this area. The company acquired the Bitcoin 
$108,883 and ether options platform Deribit for $2.9 billion. Benchmark analyst Mark Palmer noted that this move positions Coinbase strongly in the derivatives market.
Gemini expressed its excitement over this major milestone in its European expansion planned for 2025, emphasizing that it brings them closer to offering derivative products to individual and institutional users in the EU and EEA.
Expanding Market and Regulatory Developments
As derivatives products become more widespread in Europe, regulatory standards are also advancing. The MiFID II license from Malta includes specific criteria concerning financial product transparency and investor protection. In this framework, companies must fulfill various prerequisites before offering their products.
Following Gemini’s MiFID II licensing, more competition is anticipated in the European derivatives market. Regulatory bodies are expected to play an essential role in overseeing and ensuring the safety of these financial products for investors.
While these developments suggest increased access to derivatives for European investors, companies must fully comply with regulatory requirements. Thus, new licensing processes and audits are coming to the forefront. European exchanges turning towards derivatives to grow will expand the range of financial instruments available in the region.
Gemini’s MiFID II license in Europe contributes to international competition in the derivatives sector. The company focuses on meeting legal requirements to establish a presence in the derivatives market. With such moves, European customers can access a more diverse range of financial products. New regulations and licenses are crucial for market security and transparency.
