Kraken’s Strategic Move into Europe
Crypto exchange Kraken has made a significant leap by securing a Markets in Financial Instruments Directive (MiFID) license within the European Union. This milestone not only strengthens Kraken’s position in the competitive crypto landscape but also paves the way for the exchange to offer a wider array of derivatives products across the EU’s 27 member states.
A Smart Acquisition for Growth
To obtain this coveted license, Kraken acquired a Cypriot investment firm that was already licensed by the Cyprus Securities and Exchange Commission (CySEC). This strategic move allows Kraken to bypass lengthy approval processes and quickly establish itself in the EU derivatives market.
Plans for Product Launch
In a recent blog post, Kraken announced, “In the coming months, we will work on meeting the conditions to go live and launch the products in local EU markets.” The exchange is gearing up to roll out its innovative crypto derivatives offerings, aiming to cater to the growing demand in these regions.
Joining the Ranks of Industry Leaders
With this license, Kraken joins the ranks of other prominent exchanges such as Bitstamp and FTX EU, which was recently acquired by BackPack. This alignment with established players highlights Kraken’s commitment to expanding its footprint in the European market.
Continued Expansion Efforts
The MiFID license is part of a broader expansion strategy for Kraken. In addition to this recent acquisition, the exchange has also made waves in the past by acquiring Crypto Facilities, a UK-based FCA-regulated crypto futures platform, back in 2019. This demonstrates Kraken’s ongoing dedication to enhancing its service offerings and solidifying its presence in key markets around the world.
In summary, Kraken’s acquisition of a MiFID license not only marks a pivotal moment for the exchange but also signifies the growing acceptance and integration of cryptocurrency into traditional financial markets. As the company prepares to launch its derivatives products, it stands poised to become a leading player in the EU’s crypto landscape.
