US-based cryptocurrency service provider Coinbase will move its European crypto hub from Ireland to Luxembourg, the company said on Friday, in what is a big boost for the Grand Duchy’s finance industry.
Coinbase, which provides the infrastructure used by cryptocurrency creators, has had its European base in Ireland since 2023, but announced plans to switch its headquarters for the continent to Luxembourg in a post on its website on Friday.
The firm said it was now moving its European crypto hub to the Grand Duchy after receiving its Markets in Crypto Assets (Mica) licence from Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).
“By choosing Luxembourg, we’re positioning ourselves in a jurisdiction that understands the needs of the crypto industry and excels in regulatory clarity. Luxembourg is actively pursuing a whole-of-government approach to blockchain and DLT, and has passed four blockchain-related policies through the national legislature,” the company said.
The vice-president and regional managing director of EMEA at Coinbase, Daniel Seifert, told CNBC that the decision was “less” due to Ireland, “but rather for the reasons that Luxembourg presented a highly compelling option”. He added that Coinbase had “imminent” plans to hire 50 staff for its Dublin office, despite the relocation.
Earlier this week, Coinbase’s CEO Brian Armstrong told a technology conference in Kirchberg that the firm was planning to launch operations in the Grand Duchy in the coming weeks.
The company plans to hire 22 people in Luxembourg by the end of the year “and then grow from there,” Armstrong said at the Nexus conference on Tuesday.
Also read:Crypto giant Coinbase establishes Luxembourg presence
Coinbase will be the third cryptocurrency service provider in Luxembourg authorised under the EU’s Markets in Crypto-Assets Regulation (Mica), which aims to create a standardised legal framework for crypto across the bloc, and whose final provisions took effect in December 2024.