The cryptocurrency exchange Gemini, founded by twins Cameron and Tyler Winklevoss, has secured a significant regulatory milestone, paving the way for its expansion into the European crypto derivatives market. On Thursday, the company announced it received a Markets in Financial Instruments Directive II (MiFID II) license from the Malta Financial Services Authority (MFSA). This approval allows Gemini to offer regulated crypto derivatives—including perpetual contracts—across the European Union (EU) and the broader European Economic Area (EEA).
This development marks a strategic advancement in Gemini’s long-term vision to establish a robust presence in Europe. With increasing scrutiny on unregulated offshore platforms, the MiFID II license positions Gemini as a compliant alternative for both institutional and retail traders seeking secure and transparent trading environments.
Strategic Regulatory Move Ahead of MiCA
While the full implementation of the EU’s comprehensive Markets in Crypto-Assets (MiCA) regulation is still underway, Gemini’s MiFID II authorization provides a viable regulatory bridge. The license enables the platform to legally offer derivatives before MiCA’s final rollout, giving it a first-mover advantage among U.S.-linked exchanges aiming to serve European clients under formal oversight.
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Gemini’s European operations are headquartered through its Maltese entity, which has been designated as the strategic hub for compliance with upcoming EU crypto regulations. The company previously registered as a Virtual Asset Service Provider (VASP) in six European jurisdictions and obtained initial regulatory approval in Malta by the end of 2024.
Mark Jennings, Head of Gemini Europe, emphasized the importance of compliance:
“Once we go live, we’ll be able to offer regulated derivatives across the EU and EEA. Our focus right now is on meeting the final conditions required to launch these products safely and in full alignment with regulatory expectations.”
Focus on Perpetual Contracts for Experienced Traders
Gemini plans to initially target sophisticated market participants with its derivatives offerings. The flagship product will be perpetual contracts, a popular instrument in the crypto space that allows traders to speculate on price movements without expiration dates.
These instruments have gained widespread adoption due to their flexibility, leverage options, and continuous trading model—features particularly appealing to active traders. By launching with perpetuals, Gemini aligns itself with current market demand while maintaining a cautious approach focused on risk management and user education.
Jennings noted that the rollout will be gradual, with product launches expected over the coming months. This phased strategy ensures operational resilience and adherence to strict risk controls, especially critical in volatile crypto markets.
Growing Competition in Crypto Derivatives
The crypto derivatives landscape is becoming increasingly competitive. Just this week, Coinbase announced its $290 million acquisition of **Deribit**, one of the world’s largest crypto derivatives exchanges. Earlier in the month, rival platform **Kraken** confirmed its $150 million purchase of NinjaTrader, signaling a broader industry trend toward expanding futures and derivatives capabilities.
Despite lower trading volumes compared to its U.S. peers, Gemini believes its strong regulatory positioning will resonate with European users wary of offshore platforms operating in legal gray areas. As global regulators intensify oversight, demand for transparent, compliant exchanges is rising—especially among institutional investors and professional traders.
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Why Regulation Matters in Crypto Derivatives
Crypto derivatives involve complex financial risks, including high leverage, liquidity gaps, and counterparty exposure. Without proper oversight, users face potential losses from unregulated platforms that may lack transparency or adequate risk safeguards.
By obtaining MiFID II authorization, Gemini demonstrates its commitment to:
- Investor protection
- Market integrity
- Transparent pricing
- Robust anti-money laundering (AML) frameworks
- Clear dispute resolution mechanisms
These elements are crucial for building long-term trust and attracting users who prioritize safety over speculative convenience.
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FAQ Section: Addressing Key User Questions
Q: What is a MiFID II license?
A: MiFID II (Markets in Financial Instruments Directive II) is an EU regulatory framework governing financial markets and improving protections for investors. For crypto firms, it allows authorized entities to offer derivatives and other financial instruments across EU member states.
Q: Can EU users currently trade derivatives on Gemini?
A: Not yet. While Gemini has received the MiFID II license, it is still finalizing operational requirements before launching derivative products. A phased rollout is expected within the next few months.
Q: What are perpetual contracts in crypto?
A: Perpetual contracts are derivative instruments that allow traders to bet on the price of cryptocurrencies without an expiration date. They use a funding rate mechanism to keep prices aligned with the underlying asset.
Q: How does MiFID II differ from MiCA?
A: MiFID II is an existing EU financial regulation adapted for certain crypto activities, while MiCA is a new, dedicated regulatory framework specifically designed for crypto assets. MiCA will eventually replace patchwork authorizations like MiFID II for most crypto services.
Q: Why did Gemini choose Malta for its EU expansion?
A: Malta has established itself as a forward-thinking jurisdiction for blockchain and crypto regulation. Its clear licensing processes and EU membership make it an ideal base for firms seeking pan-European market access.
Q: Is Gemini safer than offshore crypto exchanges?
A: Yes. As a regulated entity under MFSA supervision, Gemini adheres to strict capital requirements, auditing standards, and consumer protection rules—offshore platforms often lack such oversight.
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Final Outlook: Building Trust Through Compliance
Gemini’s MiFID II approval represents more than just market expansion—it reflects a growing shift toward legitimacy and accountability in the crypto industry. As regulators worldwide tighten controls, platforms that prioritize compliance are better positioned to earn user trust and sustain long-term growth.
With Europe emerging as a model for balanced crypto regulation, Gemini’s strategic investments in licensing and infrastructure could pay dividends in user acquisition, institutional partnerships, and brand credibility.
As the launch of regulated derivatives nears, all eyes will be on how Gemini balances innovation with responsibility—setting a benchmark for what a secure, compliant crypto exchange should look like in 2025 and beyond.