Kraken has recorded a significant milestone in its European expansion. The crypto exchange has secured a Markets in Financial Instruments Directive (MiFID) license.
This license paves the way for Kraken to offer derivative and advanced services across EU member states. Kraken secured the acquisition of a registered Cyprus-based investment firm.
How significant is this license for Kraken?
The exchange announced the news in a blog post. It wrote: “This milestone marks a significant step in our expansion strategy, allowing us to offer fully compliant and regulated derivatives products to advanced crypto traders across selected EU markets.”
Shannon Kurtas, Kraken Co-GM of Pro & Exchange, said in a statement, “As we continue to expand our services across the globe, our focus on the European market remains a top priority. This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors.”
BIG NEWS 📣
We’re excited to announce we’ve obtained a MiFID license in the EU!
Yet another key milestone in our expansion strategy, allowing us to offer fully compliant derivatives products across selected EU markets.https://t.co/CkvP23KzGc
— Kraken Exchange (@krakenfx) February 3, 2025
This isn’t Kraken’s first expansion to Europe. Over the last two years, the crypto trading platform has secured regulatory approval in key EU states. This includes a license in Spain and Ireland. Furthermore, the exchange launched a custody service in the UK. All of these position Kraken as a key crypto service within the EU.
Europe Gears Up for Crypto Growth with MiCA Regulations
There’s been significant interest in crypto and digital assets in Europe lately. Interestingly, experts predict that crypto activity within the EU could soar 15% by 2030. This stat places Europe as one of the key hubs for digital assets.
To manage this anticipated growth, European authorities have introduced regulatory measures, ensuring crypto isn’t the wild west. Some of these measures include the introduction of the Markets in Crypto-Assets (MiCA) framework.
3/ What Is MiCA!?
MiCA (Markets in Crypto-Assets Regulation) is the EU’s crypto framework launching Dec 30, 2024.
It:
1) Protects investors
2) Regulates stablecoins
3) Licenses crypto providersIn simple terms MiCA aims to protect investors and ensure stability in the crypto…
— Fefe Demeny (@FefeDemeny) December 28, 2024
MiCA is the world’s first complete framework for crypto. It targets key areas, including anti-money laundering (AML), token issuance, and stablecoin regulations. Crypto exchanges and other service providers are required to secure a license to operate in the EU legally.
What’s Next for Kraken?
Kraken is entering a competitive EU derivatives market. It will compete with major platforms like Bitstamp and Coinbase for market share. These platforms see Europe as a key spot. Kraken wrote that “Europe represents one of our key growth markets.” The new license no doubt reflects its ambition.
Additionally, the news comes shortly after Kraken reintroduced its staking program, months after calling it quits. It also comes as most crypto exchanges anticipate a better regulatory environment under the new Trump administration.
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