Gemini secures in-principle investment firm license approval in Malta

Crypto exchange Gemini has announced it secured in-principle approval for an Investment Firm License from the Malta Financial Services Authorities.

This marks a key step in Gemini’s expansion in Europe under the the Markets in Financial Instruments Directive, known as MiFID II. Mark Jennings, Gemini’s head of Europe, shared the regulatory milestone in a blog post on Feb. 11.

According to Jennings, the Investment Firm license, which remains pending full authorization by the MFSA, will allow Gemini to offer perpetual contracts across the European Union and the European Economic Area once fully approved.

The license will enable Gemini to operate under the MiFID II, a key regulatory framework governing investment services in the EU.

“Receiving in-principle approval for an Investment License is a key milestone in our commitment to providing a best-in-class offering for retail and institutional investors. Interest in crypto derivatives, particularly from institutions, has increased significantly in recent years, as crypto matures into a recognised asset class,” Jennings noted.

While this approval is significant for Gemini’s European expansion, it is not related to the Markets in Crypto Assets regulation. Gemini previously announced that it selected Malta as its MiCA hub, meaning it plans to apply for regulatory approval under MiCA through the country. However, Gemini has not yet received in-principle approval under MiCA.

Although Gemini’s Investment Firm License was issued by Malta’s financial regulator, the company intends to passport the approval to operate across the European Union under MiFID II. This process will allow Gemini to offer its regulated derivatives products to a broader European market.

Several major crypto companies have already received MiCA licenses, including Crypto.com and Bitpanda, which secured approvals in January from regulators in Malta and Germany, respectively. Other platforms that have obtained MiCA approvals include OKX, Circle, Bullish Group, and Boerse Stuttgart Digital.

Gemini is set to join these firms, with its in-principle approval coming after the exchange designated Malta as its EU hub and MiCA application country. Meanwhile, recent reports suggest Gemini is eyeing an IPO.