Crypto exchange Kraken has secured regulatory approval under the new EU MiCA legislation, opening new avenues for expansion in Europe.
The Significance of the MiCA License
Kraken announced that it has received its MiCA license from the Central Bank of Ireland, allowing the exchange to provide regulated services across all 30 EEA member states. This licensing complements prior approvals obtained under the MiFID directive and an electronic money institution license.
Kraken's Strategic Moves in Europe
Kraken's relocation to Ireland aligns with a new strategic shift for the company. Last month, the organization moved its global headquarters to Wyoming, citing favorable conditions for the crypto industry in that state. Concurrently securing the license in Ireland strengthens Kraken's foothold in Europe amidst the lack of clear federal regulation in the U.S.
The Crypto Market under MiCA
The new MiCA regulatory framework, effective from 2024, aims to harmonize rules for digital assets in the EU. While several exchanges, including Coinbase and Crypto.com, have secured licenses, not all market participants are eager to register. For instance, Tether opted out of MiCA registration, resulting in some exchanges delisting the USDT token.
The MiCA license provides Kraken with new opportunities to operate in the European market and underscores the company's reliability as a player in the world of cryptocurrencies.
