Kraken Expands Its European Footprint with New Licenses

The Big News

Kraken has made headlines by securing an Electronic Money Institution (EMI) license from the Central Bank of Ireland and a virtual asset service provider (VASP) registration from the Bank of Spain. This dual achievement isn’t just a trophy for their shelf; it’s a game-changer for crypto enthusiasts across Europe.

What Does This Mean for Traders?

Thanks to the EMI license, Kraken can now offer euro-to-crypto trading services to a whopping 27 EU member states and Economic Area nations. If you thought trading in euros was as easy as pie, well, guess what? Now it’s pie à la mode! Alongside the VASP registration in Spain, Kraken is stepping up its game to provide exchange and wallet custodial services to Spanish residents—because who doesn’t want to store their digital coins safely?

Kraken’s European Expansion Strategy

Curtis Ting, Kraken’s vice president of global operations, remarked, “We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence.” It’s almost like they’ve installed a crypto-friendly GPS setting to navigate through regulatory landscapes.

Currently, the platform supports a mind-boggling selection of over 200 trading pairs across six fiat currencies including the British pound, euro, U.S. dollar, Canadian dollar, Swiss franc, and Australian dollar. That’s like having a buffet of currencies just waiting to be traded!

Legal Troubles on the Side

But it’s not all sunshine and rainbows; Kraken’s Australian subsidiary, Bit Trade, is facing legal heat from the Australian Securities and Investments Commission (ASIC). Allegations have surfaced claiming that Bit Trade failed to perform proper market determinations before offering margin trading services. Jonathon Miller, managing director of Kraken’s Aussie operations, seems to have been blindsided: “We believed we were on the right side of the regulations!” It just goes to show, even in crypto, unexpected lawsuits can rain on your parade.

Keeping Up with the Regulatory Landscape

This year has also seen Kraken hustling to stay compliant with new rules in Canada that require all VASPS to register with, well, the local securities overlords or risk being shown the door. In contrast, other exchanges like Binance and OKX have opted to exit the Canadian market altogether rather than jump through regulatory hoops. Kraken is taking a different road—one that might just lead to smoother sailing in the long run.