Kraken Secures Regulatory Approval to Operate Across EU Under MiCA License

By: Eva Baxter

Global cryptocurrency exchange, Kraken, has achieved a significant milestone by acquiring a full license under the Markets in Crypto-Assets (MiCA) regulation in Europe. This pivotal license was secured through the Central Bank of Ireland, making Kraken one of the first major exchanges to comply with the European Union’s new comprehensive regulatory framework for digital assets.

MiCA, which was enacted mid-2023, aims to provide a unified regulatory landscape across the European Economic Area (EEA), replacing 27 different national systems with a single set of rules. With this license, Kraken is permitted to offer a range of crypto services including custody, trading, portfolio management, and payments, enabling the company to operate seamlessly across all 30 EEA countries. More details about MiCA regulations can be found on European Commission's official site.

Kraken’s license arrives ahead of the year-end MiCA compliance deadline, showing the exchange’s commitment to ensuring its operations are aligned with the new regulatory demands. With this compliance, Kraken gains substantial strategic advantages such as passporting rights and streamlined market access across Europe, placing it in a strong competitive position alongside other US-based exchanges like Coinbase, which recently secured its own MiCA license via Luxembourg.

The approval reaffirms Kraken’s long-term commitment to the European market. The exchange's European operations currently account for approximately 25% of its global spot volume, and a significant portion of euro-denominated crypto liquidity. With the added benefit of a MiFID license from Cyprus, Kraken is also set to offer regulated derivatives trading under EU investment firm rules, further expanding its suite of services. The path to regulatory compliance may not be entirely frictionless due to potential additional local onboarding checks by national regulators. However, Kraken’s early action positions it advantageously to mitigate disruptions and foster growth within the robust legal structures established by MiCA.

This development underscores the broader trend of cryptocurrency exchanges moving swiftly to secure regulatory clarity and demonstrates the increasing importance of regulatory compliance in the rapidly evolving global crypto market.