Kraken’s European Expansion
In a significant move for its European operations, Kraken, the cryptocurrency exchange, has announced its acquisition of a license under the Markets in Crypto-Assets (MiCA) framework. This license enables Kraken to provide regulated services throughout the European Union.
This development was revealed in a statement released on Wednesday, detailing that the Central Bank of Ireland has granted this MiCA license, allowing Kraken to operate within the 30 member countries of the European Economic Area (EEA).
Previous Licenses and Trust in Crypto
Kraken’s new licensing comes on the heels of earlier achievements, including its acquisition of a Markets in Financial Instruments Directive (MiFID) license earlier in the year and an Electronic Money Institution (EMI) license in 2023.
The co-CEO of Kraken, Arjun Sethi, emphasized the importance of trust in the cryptocurrency realm, stating:
“Trust is the most valuable currency in crypto, and it’s something you earn. Our team has worked tirelessly to meet the Central Bank of Ireland’s gold standard regulatory expectations.”
Industry Implications of MiCA Approval
This MiCA approval marks a critical juncture as other cryptocurrency exchanges eye the MiCA framework to extend their regulated services throughout Europe. Competitors such as Coinbase, OKX, Crypto.com, and Bybit have announced their own MiCA licenses, set to be finalized by 2025, with Gemini reportedly nearing approval in Malta.
The MiCA regulations intend to create a cohesive regulatory landscape for digital assets across member nations, with implementation beginning in 2024 following extensive negotiations among EU policymakers.
However, not all entities within the crypto sector are pursuing MiCA compliance; notable among them is Tether, which has expressed it will not seek registration under MiCA for its USDt stablecoin—a decision that has influenced several exchanges to delist the token.
Headquarters Relocation and U.S. Operations
Interestingly, Kraken’s announcement comes shortly after the exchange relocated its headquarters to Wyoming, a state recognized for its pro-crypto regulatory environment. Despite this shift, a substantial portion of Kraken’s operations remains in the United States, where the exchange is navigating evolving regulatory proposals in Congress aimed at constructing a digital asset framework and setting guidelines for payment stablecoins.
Additionally, in March, the U.S. Securities and Exchange Commission (SEC) withdrew a civil lawsuit against Kraken, which had alleged that the exchange was operating as an unregistered entity in multiple financial capacities.
