Jean-Baptiste Graftieaux : Luxembourg enters the crypto era

Can you look back on the changes of the past twelve months?

I left Bitstamp, where I served as global CEO, following a transaction of around 200 million dollars when Robinhood acquired it. I then took the helm of Coinbase Luxembourg, and this change came at a crucial moment, as Europe's regulatory framework was evolving. Since arriving six months ago, my efforts have focused on developing Coinbase's European operations from Luxembourg, managing our team, and handling our MiCA licence and strategy. This new framework, introduced by the European Union, has transformed the regulatory approach. Previously, exchange platforms had to hold separate licences in several countries. Now a company holding a MiCA licence in one country can operate throughout the European Union.

“Given all the crypto players present, Luxembourg must maintain a high level of security.

What is the potential for Luxembourg in crypto?

The potential is very exciting. Bitstamp approached France, Germany and other countries 12 years ago. Crypto was then a very different market with few players, and only Luxembourg was ready to regulate it, so Bitstamp set up its European headquarters here. In 2014, the market was extremely fragmented. You needed a licence in France, Italy, Spain and Luxembourg, costly to maintain, much as with funds or life insurance. With MiCA, a company now chooses one country and conducts its activity across the member states. Coinbase chose Luxembourg for the regulators' 12 years of experience, which in my view is unique in Europe. It has attracted many crypto players, among them Zodia, Robinhood, Ripple and Coinbase, and offers an excellent talent pool. MiCA is not a directive but a European regulation, so no transposition is required, and every member state has applied it since January 2025. Between 200 and 250 crypto licence applications are under way in Europe, and I estimate that 20 to 30 concern Luxembourg. The Netherlands, France and Germany attract interest too, yet Luxembourg is well positioned.

How can Luxembourg prevent any risk that could slow the growth of this centre of excellence?

With MiCA, every company needs robust governance, strong internal controls and exemplary corporate management. Today Luxembourg accounts for 20 to 25% of the European market. Think of MiCA as a MiFID for crypto, an extremely solid framework that represents a small revolution in our market. It strengthens consumer protection and opens opportunities, so retail investors gain confidence and invest more readily. The barriers to entry remain high, so this market will not host 1,000 players, but rather between 100 and 250. Luxembourg must guarantee two things to our industry: security and predictability. Given all the crypto players present, Luxembourg must maintain a high level of security. In France and elsewhere, kidnappings or assaults occur almost every two weeks. I appreciate the engagement with the authorities here, yet some procedures move faster abroad. In the United Kingdom, the FCA offers a Service Level Agreement during licence applications, giving applicants a precise timeline to plan. Beyond crypto, a fast-growing AI industry shares the same needs: GPUs, electricity and specialised teams. This places Luxembourg in a rare position to attract both crypto and AI leaders.