TL;DR
- Kraken has obtained a MiFID license in the European Union, allowing it to offer cryptocurrency derivative products in 27 countries within the region.
- The license was acquired after purchasing a Cyprus-based investment firm, previously approved by the CySEC, facilitating its expansion.
- Kraken aims to increase its presence in Europe with products such as cryptocurrency futures and options, appealing to advanced and sophisticated traders.
Kraken, one of the largest cryptocurrency exchanges, has obtained an important license under the Markets in Financial Instruments Directive (MiFID) in the European Union. This will allow it to offer cryptocurrency derivative products, such as futures and options, in the 27 countries of the region. The acquisition of a Cyprus-based investment firm, previously authorized by the Cyprus Securities and Exchange Commission (CySEC), helped facilitate the process and positions Kraken as a key player in the European market, making it one of the most significant players in this new era of crypto regulation.
With this license, Kraken seeks to strengthen its presence in Europe, where the derivatives market is growing rapidly. Advanced traders will now be able to access regulated products that will allow them to diversify their cryptocurrency portfolios more efficiently. Shannon Kurtas, co-CEO of Kraken Pro & Exchange, emphasized the importance of Europe in Kraken’s global strategy:
“Our focus on the European market remains a priority.”
Regulatory Boost for Kraken
This move is part of Kraken’s strategy to comply with international regulations, as it did in 2019 when it acquired the Crypto Facilities platform, regulated by the UK’s Financial Conduct Authority (FCA). This effort to adapt Kraken’s offerings to regulations reinforces its commitment to transparency and security in the crypto space, which could increase investor confidence.
With the new license, Kraken is not only focusing on Europe but also setting a precedent for the integration of cryptocurrencies into regulated financial markets. While the full details of the derivative products have not yet been revealed, futures and options are expected to be a key part of the offering, attracting new investors interested in digital assets.
Expansion into Advanced Markets
Obtaining the MiFID license marks a crucial step in Kraken’s strategy to expand its presence in more sophisticated markets. By incorporating derivatives such as futures and options, the platform is positioned to attract experienced investors seeking efficient and regulated alternatives to manage risks and seize opportunities in the volatile crypto market. This move strengthens Kraken’s vision of offering innovative and secure financial solutions, adapting to the growing demands of an increasingly competitive global market.
