In a significant move towards expanding its presence in Europe, Kraken has secured an EU e-money license, setting the stage for offering its services in Spain and Ireland.
Regulatory Triumph in Spain
Kraken’s recent success involves securing a Virtual Asset Service Provider (VASP) license from the Bank of Spain, a pivotal step in their European strategy.
Curtis Ting, Kraken’s VP for Global Operations, expressed the importance of this milestone, stating, “Today’s announcement marks another important milestone in our European expansion strategy.”
Comprehensive European Presence
This achievement complements Kraken’s existing VASP licenses in Italy and Ireland. The acquired license empowers the exchange to provide digital asset exchange and custodial wallet services to citizens, solidifying its foundation in the European market.
Ting emphasized Kraken’s vision for substantial growth in both Spain and Ireland, with plans for further investments across Europe.
Ireland’s EMI License Opens Doors to Wider Growth
In Ireland, Kraken’s subsidiary has been granted an EU e-money license by the central bank. This license categorizes Kraken as an E-money institution (EMI), providing access to 27 EU countries and Economic Areas.
Financial Services Expansion
The EMI license enhances Kraken’s financial services, allowing for an expanded range of fiat services in collaboration with local banks. This strategic move aligns with Kraken’s commitment to diversify its services, including ventures into the evolving world of web3 and non-fungible tokens.
Ting highlighted the significance of the exchange’s position on EUR pairs, emphasizing round-the-clock client services that add value to European clients.
Firms Flocking to Europe: A Trend
Recent months have witnessed a surge in firms announcing European expansion plans, citing favorable markets, policies, and regulatory landscapes.
Impact of Crypto Legislation
The emergence of landmark crypto legislation, particularly the Markets in Crypto Assets (MiCA), has played a pivotal role. MiCA provides a comprehensive framework for exchanges, stablecoins, and other web3 services, fostering a conducive environment for crypto businesses.
Coinbase and Ripple Join the Wave
Coinbase, following Kraken’s footsteps, recently concluded its registration in Spain as part of a global crypto expansion strategy. Ripple’s co-founder, Chris Larsen, has also applauded the fintech development in the UK, likening it to a hub comparable to Silicon Valley.
In conclusion, Kraken’s strategic moves in Spain and Ireland mark a significant step in its broader European expansion strategy. The crypto industry’s focus on Europe underscores the region’s growing importance as a hub for innovation and regulatory clarity. As firms like Kraken continue to navigate and contribute to this landscape, the crypto space in Europe is poised for continued growth in the years ahead.
