Kraken Obtains European MiFID License to Deal in Crypto Derivatives

Kraken has expanded its market share in Europe by obtaining a license under the EU’s MiFID. The announcement, made via the company’s blog on February 3, follows Kraken’s recent acquisition of a Cyprus-based investment firm that had secured authorization from the Cyprus SEC.

The regulatory approval enables the exchange to offer fully compliant crypto derivatives to experienced investors in select European regions.

Kraken’s Pro and Exchange division’s co-general manager, Shannon Kurtas, highlighted the exchange’s commitment to growing its services internationally, with Europe continuing to be a key focus. She underlined Kraken’s dedication to establishing a safe and regulated trading environment for seasoned cryptocurrency investors and restated the company’s faith in the EU market.

With Europe being one of the most active markets for cryptocurrency derivatives trading, Kraken sees this as a strategic move that aligns with its broader vision. Operating under an EU-approved framework allows the company to cater to advanced traders while ensuring compliance with regional regulations. The platform will offer flexibility by supporting various collateral currencies, enabling traders to manage their positions efficiently and with optimized capital usage.

This development is part of Kraken’s broader regulatory strategy in Europe. In 2023, the exchange secured an EMI license from Ireland’s central bank, expanding its euro fiat services across Europe. Furthermore, Kraken was officially registered as a VASP with the Bank of Spain, reinforcing its regulated status on the continent.

Continuing its European expansion, Kraken obtained another key license in the Netherlands last year. The Dutch Central Bank granted the company a VASP registration following Kraken’s acquisition of BCM, a Netherlands crypto brokerage, in 2023. This move was part of Kraken’s broader effort to strengthen its presence in the Netherlands.

Kraken’s commitment to regulatory compliance dates back to 2019 when it acquired UK-based FCA-regulated cryptocurrency futures platform, Crypto Facilities. This acquisition led to the establishment of the first licensed crypto futures firm in the UK, reinforcing Kraken’s commitment to security and regulatory adherence.

By securing its latest EU license, Kraken continues to lead in providing regulated crypto trading solutions for experienced investors. This new approval not only ensures compliance with EU regulations but also paves the way for broader access to derivative products. Over the next few months, the exchange plans to fulfill all necessary regulatory obligations before officially rolling out its services in respective EU markets.

The exchange isn’t the only crypto firm making regulatory progress. On January 27, Bitpanda was approved by Germany’s BaFin under the MiCAR. This regulatory nod allows Bitpanda to operate across all EU member states under a unified framework, further advancing the landscape of regulated cryptocurrency trading in Europe.

This expansion of Kraken’s footprint in different markets could deepen the penetration of crypto and create opportunities for other industry actors like Canaan Inc. (NASDAQ: CAN). Kraken’s win is therefore good for the entire industry.

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