Crypto exchange Kraken has received approval from the UK's Financial Conduct Authority (FCA) to provide electronic money services, opening new opportunities for expanding its fiat programs.
FCA Approval and Its Implications
The approval from the UK's Financial Conduct Authority (FCA) enables Kraken to issue electronic money and handle deposits and withdrawals for its clients. This expansion is expected to help Kraken improve access to its fiat services for users facing banking restrictions.
Kraken's Expansion Plans in the UK
With this license, Kraken can offer virtual accounts as a standalone product, which will be particularly beneficial for enterprises requiring efficient fund management and reconciliation processes. According to Kraken's UK General Manager Bivu Das, 'The UK is on the brink of mass crypto adoption, and Kraken is poised to lead the way with industry-leading products. We have major plans for UK users that will unlock a wave of demand for crypto-powered financial solutions that showcase real utility for UK investors and consumers.'
Crypto Regulatory Developments in the UK
The UK is advancing towards clearer crypto regulation. Recent amendments to the Financial Services and Markets Act 2000 clarified that cryptocurrency staking does not fall under the definition of a 'collective investment scheme.' This change provides much-needed regulatory clarity for firms offering staking services in the UK.
The acquisition of the FCA license is a significant step for Kraken in its expansion strategy in the UK, opening new prospects for integrating traditional and cryptocurrency financial markets.
