Home Business Kraken Acquires European License to Operate in the EU Market

Kraken Acquires European License to Operate in the EU Market

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The new license, issued by the Cyprus regulator, empowers Kraken to offer its services in the European Union, since it is compatible with the Cryptactive Market Law (MICA).


Some key points about Kraken’s new license include:

  • Kraken received a license from the Cyprus regulator
  • This license allows them to offer their services in the European Union
  • This permit is compatible with the Mica Law
  • The Exchange resumed its staking services with cryptocurrencies in the US

The International Exchange with headquarters in the US, Kraken, received licenses to bring its operations to European territory, which is compatible with the new regulatory provisions that entered into effect at the end of last year.

Key license in Europe

According to several published reports, Kraken received a license from the Financial instrument market directive (MIFID) of Cyprus, this after the acquisition of an investment firm based in the country. The new license enters into accordance with the provisions for Cryptoactive markets (Mica) which entered into force at the end of last year and establishes certain rules for companies and platforms providing services related to digital currencies. Therefore, after being approved in Cyprus, the Exchange will be able to offer its services in the region.

In this regard, the general co-director of Pro & Exchange in Kraken, Shannon Kurtas, assured that the "Acquisition reflects confidence in the European Union, and underlines the commitment to provide a reliable and regulated environment for advanced cryptocurrency investors and merchants."

"This offer allows advanced operators to obtain exposure to a wide selection of assets in a flexible and efficient way in terms of capital, using a variety of collateral currencies to support their positions," said the Exchange, adding that Europe is one of the most active regions in the field of Crypto derivatives, so the new license goes hand in hand with the plans to expand its supply of products and services.

Interesting moment for Kraken

The announcement by Kraken comes at a time when the Exchange has been taking steps on certain fronts, especially in the US. Days ago, the Exchange again enabled its staking services with cryptocurrencies in the US, allowing users to provide their funds in guarantee and derive passive profits.

The return of Staking Programs occurs almost two years after Kraken was obliged to suspend them for its users in the US. As such, under the administration of Gary Gensler, the Sec denounced that Kraken offered this modality of operations without having properly registered the product as an offer of values. He claimed that there was a breach of federal laws, since any program that derives passive profits should be considered under their jurisdiction.

The agency denounced that Kraken illegally offered this product to US clients since 2019. Therefore, in February 2023, they imposed a fine for USD $30 million to the exchange to resolve the charges in question, and the measure also contemplated the suspension of the staking programs in the US.

WARNING: This is an informative article. It should be noted that investments in cryptoactive are not regulated in some countries. They may not be appropriate for retail investors, as the inverted total amount could be lost. See your country’s laws before investing.

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