Crypto Exchange Kraken Expands European Footprint with EMI License and VASP Registration

Crypto Exchange Kraken Expands European Footprint with EMI License and VASP Registration

Crypto News – Kraken, the prominent cryptocurrency exchange, is actively expanding its footprint within the European Union (EU). Recently, the company received authorization from the Central Bank of Ireland to operate as an E-Money Institution (EMI). Additionally, Kraken has successfully registered with the Bank of Spain as a Virtual Asset Service Provider (VASP). These achievements underline Kraken’s strong commitment to regulatory compliance and its strategic growth plans within Europe.

Expansion Efforts in the EU

The EMI license obtained by Kraken’s subsidiary in Ireland marks a significant milestone, allowing the firm to extend its fiat services denominated in Euros through collaboration with European banks. This expansion is set to benefit clients across all 27 EU member states, including nations within the European Economic Area, establishing a vital growth region for the company. Moreover, Kraken’s recent VASP registration in Spain empowers the company to provide cryptocurrency exchange and custodial wallet services to Spanish residents. Similar VASP registrations in Ireland and Italy underscore Kraken’s dedication to expanding its services across Europe.

Curtis Ting, Kraken’s Vice President of Global Operations, has expressed optimism regarding the company’s growth in Europe. He attributes this success to Europe’s forward-thinking regulatory environment, providing a solid foundation for cryptocurrency and instilling confidence in Kraken’s growth prospects. Ting stated, “We see a firm foundation for crypto in Europe, which has forward-looking regulation that enables us to grow with confidence.”

Regulatory Challenges in the US

However, Kraken’s commitment to regulatory compliance has not been without its challenges. The company is currently engaged in contesting a probe by the Internal Revenue Service (IRS) in the United States. Kraken perceives this investigation as an “unjustified treasure hunt,” echoing a broader sentiment among cryptocurrency exchanges, including Coinbase, who view the regulatory pressure as unfair. The IRS has been increasing its focus on the crypto market in recent years, and Kraken’s resistance to the IRS’s scrutiny reflects a trend of crypto companies in the United States standing up against what they consider excessive examination.

Despite these regulatory hurdles, Kraken remains dedicated to advancing its offerings. Over the past year, the company has introduced a new consumer web user experience, the Kraken Pro advanced trading interface, and its NFT marketplace. This ongoing investment in its services, combined with its market-leading position in liquidity and volume for EUR crypto pairs, positions Kraken favorably for future growth in Europe.