Kraken, one of the leading cryptocurrency exchanges, has recently obtained a Markets in Financial Instruments Directive (MiFID) license in the EU. This significant milestone allows Kraken to broaden its regulated derivatives offerings across key European markets. The license was acquired through the acquisition of a Cypriot investment firm, which was approved by the Cyprus Securities and Exchange Commission (CySEC).
With the MiFID license, Kraken is now poised to offer a fully compliant derivatives trading platform tailored to sophisticated crypto investors. This move not only strengthens Kraken’s presence in the EU but also enables the exchange to tap into Europe’s growing derivatives market while meeting regulatory expectations.
Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange, emphasized the importance of the European market, stating, “As we continue to expand globally, our focus on the European market remains a top priority.” Kraken plans to fulfill the necessary regulatory conditions in the coming months before launching its derivatives products in EU markets, although a specific timeline has not been disclosed.
In addition to its European expansion, Kraken has also relaunched its on-chain staking services for US clients in 37 states and two territories. This comes nearly two years after the program was suspended due to regulatory challenges. The new staking product allows users to participate in bonded staking for 17 digital assets, demonstrating Kraken’s commitment to providing innovative services to its clients.
Kraken has been actively building its regulatory presence to enhance its derivatives trading capabilities. In 2019, the exchange acquired Crypto Facilities, a Financial Conduct Authority (FCA)-regulated crypto futures platform in the UK. This acquisition made Crypto Facilities the first licensed crypto futures provider in the country.
With the MiFID license, Kraken not only extends its commitment to regulatory compliance but also aims to broaden access to advanced trading tools for European investors. The exchange remains focused on setting industry standards for security, innovation, and customer experience. While the full scope of the derivatives products to be offered under the MiFID license has not been disclosed, industry analysts anticipate futures, options, and structured products to be key components of Kraken’s European derivatives portfolio.
Overall, Kraken’s acquisition of the MiFID license marks a significant step towards expanding its presence in the EU and offering a comprehensive range of regulated derivatives products to its clients. As the cryptocurrency market continues to evolve, Kraken remains at the forefront of providing innovative solutions to meet the needs of sophisticated investors.