Kraken, one of the leading cryptocurrency exchanges headquartered in the United States, has secured significant regulatory approvals in Europe. This achievement marks a pivotal moment in the global cryptocurrency landscape, as Kraken sets its sights on expanding its services across the European continent. Crypto exchange Kraken wins regulatory approval from the financial authorities of both Ireland and Spain, two European Union countries known for their well-defined regulatory frameworks in the crypto industry
Kraken continues its forward march into the European expansion arena
Kraken, the digital asset exchange, has successfully obtained authorization as an e-money institution (EMI) from the Central Bank of Ireland and has registered as a virtual asset service provider (VASP) with the Bank of Spain. In a press release issued on Tuesday, the San Francisco-based company emphasized that these regulatory approvals underscore its dedication to expanding its presence in the European market.
The EMI license, granted to Kraken’s subsidiary in Ireland, enables the exchange to establish partnerships with European banks, thereby expanding its euro fiat services for clients across the European Union’s 27 member states and the countries within the European Economic Area (EEA). This region holds significant strategic importance for Kraken’s growth strategy.
Kraken also clarified that its VASP registration with Spain’s central bank allows it to offer cryptocurrency exchange and custodial wallet services to residents of Spain. Notably, the exchange has already received similar registrations in Ireland and Italy, showcasing its unwavering commitment to adhering to regulatory compliance standards
Kraken’s European Expansion Gains Momentum
This announcement signifies a significant achievement in our strategy for expanding into Europe,” remarked Curtis Ting, Kraken’s Vice President of Global Operations. He emphasized the company’s enthusiasm for integrating into the local fintech ecosystems of both countries and expressed anticipation for ongoing investments in Europe. Ting further commented:
We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence. We are grateful for the constructive approach to regulating industry growth set by the Central Bank of Ireland and the Bank of Spain.
Kraken’s pursuit of European expansion aligns with the impending implementation of the new Markets in Crypto Assets (MiCA) legislation on the continent. Notably, this effort mirrors the strategies of other leading U.S. exchanges. In a September blog post, Coinbase, the premier U.S. crypto trading platform, declared its intent to prioritize growth in regions with well-defined crypto regulatory frameworks.
Coinbase contrasted this approach with the United States, where government agencies have chosen to enforce existing regulations through legal proceedings. In recent news, Coinbase revealed its acquisition of a Spanish registration and expressed interest in acquiring FTX Europe for its derivatives business.
Kraken, as one of the world’s most established crypto platforms, emphasizes its robust security and a decade-long track record of exceptional client service. Curtis Ting stressed that these strengths, combined with Kraken’s prominent position in liquidity and trading volume for euro-crypto pairs, present an appealing value proposition for prospective European clients. He also pledged Kraken’s ongoing commitment to advancing crypto adoption in the region.
Crypto exchange Kraken wins regulatory approval marks a pivotal step in its ambitious expansion strategy. As cryptocurrency regulations evolve on the Old Continent, Kraken’s proactive approach aligns with its commitment to compliance and growth. This mirrors the strategies of other leading U.S. exchanges like Coinbase, emphasizing the importance of operating in markets with clear crypto regulations. With a proven track record, robust security, and a focus on liquidity, Kraken is poised to offer European clients a compelling value proposition. The exchange’s dedication to advancing crypto adoption in the region positions it as a significant player in the ever-changing crypto landscape.