Popular cryptocurrency exchange Kraken has marked a significant stride in its European expansion drive. On September 26, 2023, the exchange announced that it had secured licencing approvals from the Central Bank of Ireland and the Bank of Spain. These authorizations grant Kraken new capabilities and access within the European Union (EU) and European Economic Area (EEA).
In Ireland, Kraken’s subsidiary has been granted an E-Money Institution (EMI) license. The license allows Kraken to expand its Euro (EUR) fiat services in collaboration with European banks. Thus, it can potentially serve clients across all 27 EU member states and EEA countries.
Simultaneously, Kraken noted that it had successfully registered with the Bank of Spain as a Virtual Asset Service Provider (VASP). This registration empowers Kraken to offer cryptocurrency exchange services and custodial wallets to residents of Spain.
The recognition in Spain follows recent VASP registrations in Ireland and Italy, demonstrating Kraken’s unwavering dedication to bolstering its European presence.
According to Kraken, these authorizations demonstrate its unwavering dedication to bolstering its European presence and growing its business in the region.
In a statement released by the exchange, Curtis Ting, Vice President of Global Operations at Kraken, identified Europe as a promising region for cryptocurrency ventures, largely due to its forward-looking regulatory stance. Ting conveyed his gratitude to the Central Bank of Ireland and the Bank of Spain for their “constructive approach to regulating industry growth.”
Ting remarked;
“In both Ireland and Spain, we are excited to become part of their vibrant local fintech sectors. We also look forward to continuing our investments in Europe more broadly.”
However, amid these advances in Europe, Kraken faces regulatory challenges in Australia, where its service provider, Bit Trade Pty Ltd, has allegedly failed to comply with important regulations.
The Australian Securities and Investment Commission (ASIC) disclosed on September 21, 2023, that Bit Trade’s non-compliance had led to losses exceeding $12.95 million for over 1,160 Australian customers who utilized the exchange’s margin trading product.
In response, Jonathon Miller, Managing Director of Kraken’s Australian operations, expressed surprise and disappointment at ASIC’s enforcement action. He contended that the product in question had adhered to local regulations, sparking a contentious regulatory tussle.
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