Coinbase, one of the world’s biggest crypto marketplaces, has switched its European regulatory hub from Ireland to Luxembourg.
The company has obtained its Markets In Crypto Assets (Mica) licence, a foundational legal instrument for trading across the EU 27 countries, in Luxembourg.
In 2023, Coinbase had said that Ireland was chosen from 27 EU countries to be its regulatory and operational hub for Europe, citing a “stable political environment for technology innovation”, “respected regulators” and being “a jurisdiction that is familiar and comfortable with both financial services and technology.”
Since then, the Irish Central Bank has consistently denigrated crypto as a sector, with Governor Gabriel Makhlouf publicly branding virtual currencies as “Ponzi schemes”.
Coinbase CEO, Brian Armstrong, said in an interview with CNBC that the company has moved to Luxembourg for regulatory reasons.
“Luxembourg is leading the way with its pro-business climate and thoughtful approach to regulation,” he said.
Earlier this year, another prominent crypto company also switched its regulatory hub away from Ireland, where it had initially established its European base.
Gemini, the cryptocurrency exchange founded by the US billionaire Winklevoss twins, switched its headquarters from Ireland to Malta, citing a better environment for “innovation among fintech and digital assets”.
Senior figures in the Irish cryptocurrency and blockchain industry have expressed concern that a lack of Irish interest in cryptocurrency regulation is driving companies and jobs away.
Earlier this year, the Central Bank tendered for consultants to advise it on crypto regulation, after the EU’s main Mica rules had already come into force, prompting accusations of being a party-time regulator from prominent Irish crypto figures.
In a move to reassure Irish staff of Coinbase’s future here, the company’s vice president and regional managing director, Daniel Seifert, said that it would soon hire more people for its Dublin office.
“Regarding Ireland, we are happy to announce that Coinbase is doubling down on its commitment to the country and we are imminently adding around 50 jobs to our office,” he said.
Coinbase is understood to employ over 100 people at present, having shed almost half of its staff during the tech industry’s post-Covid layoffs.
“Our e-money licence through which we service customers across the EU is held in Ireland,” said Mr Seifert.
“I have relocated to Ireland, as CEO of the Irish entity, demonstrating our commitment to scaling international operations and deepening our presence in Europe, one of the most strategic and rapidly evolving crypto markets globally.”
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