Kraken Expands its Presence in the EU
Kraken, the cryptocurrency exchange, has made significant progress in expanding its operations in the European Union (EU). It recently received authorization from the Central Bank of Ireland to operate as an E-Money Institution (EMI) and has also registered with the Bank of Spain as a Virtual Asset Service Provider (VASP).
These developments highlight Kraken’s commitment to complying with regulations and its focus on growing its presence in Europe.
Kraken’s EMI License and Euro-Based Fiat Services
The EMI license granted to Kraken’s Irish subsidiary allows the company to expand its fiat services in euros by collaborating with European banks. This expansion will benefit clients across the 27 EU member states, including European Economic Area nations, which are crucial for the company’s growth.
Kraken’s VASP Registration in Spain
Kraken has also obtained VASP registration in Spain, enabling it to provide cryptocurrency exchange and custodial wallet services to Spanish residents. This registration follows similar ones in Ireland and Italy, demonstrating Kraken’s commitment to expanding its presence in Europe.
Optimism for Growth in Europe
Curtis Ting, Kraken’s Vice President of Global Operations, is optimistic about the company’s growth in Europe. He attributes this success to Europe’s forward-looking regulation, which provides a strong foundation for crypto and instills confidence in its growth potential.
Regulatory Challenges in the US
Despite its commitment to regulatory compliance, Kraken faces challenges. The company is currently contesting an investigation by the Internal Revenue Service (IRS) in the United States. Kraken views this probe as an unjustified treasure hunt and joins other cryptocurrency exchanges, such as Coinbase, in criticizing regulatory pressure.
Continued Advancements and Future Growth
Despite these challenges, Kraken continues to invest in its offerings. It has launched a new consumer web user experience, the Kraken Pro advanced trading interface, and an NFT marketplace. With its market-leading position in liquidity and volume for EUR crypto pairs, Kraken is well-positioned for future growth in Europe.
Hot Take: Kraken Expands its European Footprint with Regulatory Compliance
Kraken’s recent authorizations and registrations in Ireland and Spain showcase its commitment to expanding its presence in the European Union. By complying with regulations and securing licenses as an E-Money Institution and Virtual Asset Service Provider, Kraken can offer a broader range of services to clients across the EU. While facing regulatory challenges in the United States, Kraken remains focused on advancing its offerings and positioning itself for future growth in Europe. With its market-leading position and continuous investments, Kraken is well-prepared to navigate the evolving cryptocurrency landscape.
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