Kraken wins an EU license, allowing it to expand its derivative services across the region

Kraken, a major cryptocurrency exchange, has further bolstered its European expansion by securing a significant new regulatory milestone. The firm has successfully obtained a Markets in Financial Instruments Directive (MiFID) license through its Cyprus-regulated entity, Cypriot Investment Firm. This license will enable Kraken to offer derivatives products to clients within the European Union, marking an important step in its strategic move to increase its European presence.

The license was issued by the Cyprus Securities and Exchange Commission, providing Kraken with the necessary regulatory approval to operate in the region. The move is considered a key part of Kraken’s broader efforts to meet the growing demand for crypto derivatives trading in Europe, a market that has seen increasing institutional interest. Kraken’s co-general manager of Pro & Exchange, Shannon Kurtas, highlighted that the MiFID approval was a priority for the company, emphasizing the significance of the European market for Kraken’s global expansion plans.

In addition to this MiFID license, Kraken has been steadily expanding its regulatory foothold across Europe. The company had previously secured a crypto broker license in the Netherlands through a partnership with Dutch broker Coin Meester. Moreover, Kraken has formed several strategic partnerships with German blockchain clients to enhance its service offerings.

This regulatory progress in Europe comes as the European Union’s Markets in Crypto Assets (MiCA) Regulation has been implemented, offering clearer rules for crypto services across the region. The new framework encourages increased compliance among crypto firms and has attracted more institutional players to the European market. However, the MiCA requirements have also led to challenges for some firms. Companies like Kraken, Coinbase, and Crypto.com have faced difficulties in complying with the regulations, even opting to delist Tether’s stablecoin, which is pegged to the U.S. dollar, due to the regulatory constraints of MiCA.

Overall, Kraken’s efforts to expand its European services and secure key regulatory approvals signify its commitment to remaining a major player in the global cryptocurrency exchange market. With more European partnerships and licenses expected, Kraken’s European presence is set to grow, further solidifying its role as a key exchange in the crypto industry.