Cryptocurrency exchange Kraken has received regulatory approvals in Ireland and Spain, allowing it to expand its services in both countries. The company’s subsidiary in Ireland has been granted an E-Money Institution license by Ireland’s central bank, enabling Kraken to extend its fiat services in partnership with European banks to clients across the European Union and European Economic Area.
In Spain, Kraken has secured a Virtual Asset Service Provider (VASP) registration, permitting it to offer cryptocurrency exchange and custodial wallet services to Spanish residents. These developments mark significant milestones in Kraken’s European expansion strategy.
Kraken, a prominent cryptocurrency exchange, has announced its expansion in Ireland and Spain, driven by regulatory authorizations from both countries. In a statement released on Tuesday, the company revealed that its subsidiary in Ireland has been granted an E-Money Institution (EMI) license by the Central Bank of Ireland. This significant development allows Kraken to broaden its range of services related to the Euro (EUR) in collaboration with European financial institutions.
The EMI license empowers Kraken to expand its offerings to clients in the 27 member states of the European Union (EU) and European Economic Area (EEA) countries. This expansion will enhance Kraken’s ability to facilitate cryptocurrency transactions involving the Euro, providing a secure and regulated platform for its European customer base.
In addition to the approval in Ireland, Kraken has also secured a Virtual Asset Service Provider (VASP) registration in Spain. This regulatory clearance enables the cryptocurrency exchange to offer cryptocurrency exchange and custodial wallet services to residents of Spain. The VASP registration further solidifies Kraken’s presence in the Spanish cryptocurrency market, allowing local users to access a wide range of digital asset services with confidence.
Kraken’s achievement in obtaining VASP registrations in both Ireland and Italy underscores its commitment to regulatory compliance and the expansion of its services in key European markets. These registrations provide a strong foundation for Kraken to serve the growing demand for cryptocurrency services in Europe.
Kraken’s European expansion strategy
Curtis Ting, Vice President of Global Operations at Kraken, expressed the company’s commitment to its European expansion strategy, stating, “Today’s announcement marks another important milestone in our European expansion strategy. We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence.”
Kraken’s strategic focus on Europe aligns with the region’s increasing regulatory clarity and its position as a prominent hub for cryptocurrency innovation and adoption. Kraken’s recent expansion efforts in Europe also include rolling out support for PayPal deposits for users in the United Kingdom and other European countries, excluding Hungary and Croatia. This move aims to enhance user convenience and accessibility to cryptocurrency services in the region.
The cryptocurrency exchange faces competition in Europe from other major players like Coinbase, which is also actively pursuing market penetration in the region. European regulators have been proactive in providing clear guidelines for cryptocurrency-related businesses and digital payments, fostering a conducive environment for industry growth.
This contrasts with the regulatory challenges faced by exchanges like Coinbase and Binance in the United States, where regulatory scrutiny has posed threats to their operations in the world’s largest cryptocurrency market.