Cryptocurrency exchange Kraken continues to expand its services in Europe by acquiring a MiFID license. This move enables the company to offer derivative products to advanced crypto traders in the European Union.
Acquisition of MiFID License
Kraken secured a MiFID license through the acquisition of a Cypriot investment firm, recently approved by the Cyprus Securities and Exchange Commission. Concurrently, the exchange has been actively expanding its presence in Europe, obtaining licenses in Spain and Ireland, alongside adding Kraken Custody to the UK market. In September 2024, Kraken acquired a Dutch crypto broker, part of its strategy to strengthen its footing amidst the rapidly growing European crypto market.
Regulation and Competition in the EU
Amidst the growing crypto market in Europe, the EU is implementing MiCA regulations addressing Anti-Money Laundering, token issuance, and stablecoin-specific rules. Global crypto entities like Crypto.com and OKX have secured relevant licenses. Kraken highlights Europe as one of the most active regions for crypto derivatives trading, entering a market with competitors like Bitstamp, Backpack, D2X, and Coinbase.
Crypto Derivatives Market and Kraken's Plans
Crypto derivatives are financial products typically aimed at advanced traders, including futures and options, based on the price of the underlying crypto asset. In the crypto space, derivatives are often seen as risky due to volatility. Kraken has recently reintroduced its staking program in the US market after a two-year hiatus caused by a legal battle with the US Securities and Exchange Commission. According to a recent report, the exchange's revenue more than doubled in 2024 to $1.5 billion.
Kraken continues to extend its footprint in Europe, offering new opportunities for advanced crypto traders. Acquiring a MiFID license allows the company to tap into the increasing demand for crypto derivatives and compete with other major players in the European market.
