Kraken Expands European Presence with New Digital Asset License
Kraken, a prominent crypto exchange, has accelerated its European expansion by securing a Markets in Financial Instruments Directive (MiFID) license. This license allows Kraken to offer derivatives products within the European Union through its Cyprus-regulated entity, Cypriot Investment Firm.
The acquisition of the MiFID license is a strategic move for Kraken to strengthen its European presence, and it comes at a time when there is strong demand for crypto derivatives trading from European market participants. Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange, noted that “our focus on the European market remains a top priority” as the firm continues to expand its services globally.
Regulatory Approvals and Partnerships
Kraken’s acquisition of Cypriot Investment Firm to access a MiFID license is the latest addition to its growing list of European regulatory approvals. The crypto exchange has also secured a crypto broker license in the Netherlands via Dutch broker Coin Meester and established partnerships with German blockchain clients to list services.
European Market Attracting Institutional Interest
While the U.S. has been at the forefront of the global crypto scene, Europe has also been attracting institutional interest as demand for digital asset services increases. The European Union’s introduction of the Markets in Crypto Assets Regulation (MiCA) has standardized cryptocurrency regulation across the region, encouraging compliance among market participants.
However, some major firms have struggled to meet MiCA’s requirements, leading to potential market exits. Kraken, Coinbase, and Crypto.com have decided to delist Tether’s $140 billion U.S. dollar-pegged stablecoin (USDT) due to MiCA requirements.
Tips for Investors and Market Participants
As the European market continues to evolve, here are some key takeaways for investors and market participants:
- Understand the regulatory landscape: Familiarize yourself with the Markets in Crypto Assets Regulation (MiCA) and its requirements.
- Stay informed about market developments: Keep up-to-date with the latest news and trends in the European crypto market.
- Choose reputable exchanges: Select exchanges that have secured necessary regulatory approvals and licenses.
For more news on the crypto market, visit Global Crypto News.