Coinbase and Ripple gain EU access as Binance scales back under MiCA

Coinbase and Ripple have secured EU-wide access through Luxembourg as Binance and other unlicensed platforms reduce services following MiCA's July 1 deadline. Binance withdrew its Greek license application and suspended services in several EU countries after the 18-month transitional period ended, requiring crypto-asset service providers to obtain authorization to serve customers across the bloc. Coinbase selected Luxembourg as its MiCA base in June, obtaining passporting rights across all 27 EU member states and additional countries. Its license from Luxembourg's Commission de Surveillance du Secteur Financier allows operation across these markets. To attract users from unlicensed platforms, Coinbase offered a 5% bonus on eligible asset transfers. Ripple received preliminary approval on June 23 and full authorization on July 6, enabling regulated payment, custody, and stablecoin services across the European Economic Area. Luxembourg has become a key entry point for MiCA compliance, with Coinbase and Ripple joining Bitstamp in establishing operations there. However, customer transfers pose compliance risks for both departing and receiving exchanges. Legal technology providers are also benefiting from increased compliance demands, with firms like Reed Smith launching platforms to automate MiCA-related tasks. Additionally, regulated exchanges are restricting USDT, creating opportunities for USDC and RLUSD. Coinbase's inflows could impact regional revenue, while Ripple's expansion may enhance XRP's role in EU financial services, contingent on customer adoption and compliance with MiCA and anti-money laundering regulations.

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