Gemini Receives In-Principle Approval to Offer Perpetuals Across the EU

Highlights:

• Gemini receives in-principle approval for an Investment Firm license from the Malta Financial Services Authority (MFSA).
• The license will allow Gemini to offer regulated perpetual futures and options across the EU and EEA under MiFID II.
• This approval supports Gemini’s European expansion strategy following its selection of Malta as its EU hub.

Gemini has received in-principle approval for the Investment Firm license from the Malta Financial Services Authority (MFSA). If approved pending the final authorization, it will allow the exchange the regulatory acknowledgment to provide futures and options across the EU and EEA as per the MiFID II regulation.

As stated in the press release, the approval is an essential strategic move in Gemini’s 2025 vision. The exchange previously had chosen Malta as its key EU location and jurisdiction for its Markets in Crypto-Assets (MiCA) application. Once fully licensed, Gemini will offer perpetual futures contracts and other products to advanced traders and institutional clients.

Big news! 🇪🇺 We have received in-principle approval in Malta for an Investment Firm license, pending final requirements from the MFSA. Once granted, this will allow us to offer regulated futures and options across the EU and EEA under MiFID II pic.twitter.com/pSGUQYugcy

— Gemini (@Gemini) February 11, 2025

Strategic Expansion and Regulatory Compliance

Gemini intends to expand its services in Europe with the assistance of regulated financial products. The exchange offers spot trading with over 90 digital assets, an ActiveTrader platform with more than 80 different trading pairs, and an OTC desk for institutional investors. The license will enable Gemini to offer a derivative product that corresponds to the growing institutional demand for cryptocurrency derivatives.

Gemini’s Head of Europe, Mark Jennings, stated that the need for crypto derivatives has steadily risen, especially among institutional investors. He pointed out that cryptocurrencies are evolving into an accepted class of investment, hence the need for regulatory approval for growth. Gemini can accommodate traditional financial regulations in line with MiFID II, allowing for a structured trading platform.

What the License Means for Gemini

Once fully approved, Gemini will be able to offer perpetual futures contracts that do not have an expiration date to professional traders and institutions. This is in line with its trend to diversify regulated products beyond spot trading. The exchange has already acquired the Virtual Financial Assets (VFA) Service License in Malta that permits spot trading and not derivatives.

The latest in-principle approval demonstrates Gemini’s adherence to regulatory compliances and the growth of institutional clients. Besides Malta, the exchange has also ventured into France, strengthening its position in Europe. Recent senior hires further demonstrate its commitment to scaling operations across the region.

Market experts believe that the crypto exchanges that gain a MiFID II license could gradually dive into contracts for difference (CFD) trading like Crypto.com has done in Australia. However, for now, Gemini will continue to focus on perpetual futures and regulated derivatives within the EU and EEA.

Institutional Interest and Industry Trends

This move aligns with the current trend of key crypto exchanges in search of licensing in the Europe market. Other major rivals such as Coinbase and Kraken have also attained similar approvals in Cyprus. These approvals correspond with the EU’s efforts towards creating a one-stop union regulatory regime in the member states with MiCA.

BIG NEWS 📣

We’re excited to announce we've obtained a MiFID license in the EU!

Yet another key milestone in our expansion strategy, allowing us to offer fully compliant derivatives products across selected EU markets.https://t.co/CkvP23KzGc

— Kraken Exchange (@krakenfx) February 3, 2025

Malta has become one of the most popular countries for cryptocurrency companies due to its liberal approach to regulation. OKX, another major exchange, also selected Malta as its MiCA compliance hub in 2024. With the advanced adoption of the regulation in Europe, major crypto exchanges are adapting to the next steps under MiFID II regulations.