- Kraken gains a MiFID license to expand regulated derivatives trading in Europe and strengthen its compliance efforts.
- The company secures multiple approvals to meet EU financial rules and provide safer trading for advanced investors.
- Kraken plans to grow its derivatives market by following strict regulations and offering diverse trading options.
Kraken has secured a MiFID license to expand its European presence. Kraken achieved this approval after it purchased a Cyprus Investment Firm regulated through the Cyprus Securities and Exchange Commission. The recent development enables it to offer regulated derivatives trading services within specific European market boundaries.
The MiFID license aligns with its strategy of prioritizing compliance while expanding its market reach. With this approval, the exchange can legally offer derivative products to experienced traders. This move reinforces its commitment to regulatory standards within the European Union.
Strategic Expansion and Market Growth
Europe remains a key growth region for the exchange. The demand for regulated derivatives trading is high, making this license a significant step. However, the company must meet additional regulatory requirements before introducing its derivatives products.
Kraken has made previous attempts to establish legal presence in Europe. The firm obtained its E-Money Institution license from the Central Bank of Ireland in 2023. The approval from regulatory authorities allowed it to operate its euro-based fiat services in every nation within the EU member states and European Economic Area member states.
Kraken acquired authorization as a Virtual Asset Service Provider from the Dutch Central Bank. This registration further enhances its regulatory compliance, ensuring a secure trading environment for institutional and advanced investors. The new MiFID license complements these approvals, strengthening Kraken’s ability to offer compliant crypto derivatives.
Future Prospects and Institutional Offerings
With this license, Kraken can provide more capital-efficient trading options. Advanced traders can access a wide range of assets while using different collateral currencies. This flexibility benefits institutional and professional investors looking for diversified trading opportunities. The company has actively expanded its regulated derivatives market.
The firm made a strategic acquisition in 2019 by purchasing Crypto Facilities which operates as a crypto futures trading platform. That acquisition helped establish its derivatives services in the UK. Kraken aims to replicate its UK success in the European market.
The company will comply with all regulatory conditions before launching its derivatives products, ensuring adherence to EU financial rules. This approach underscores its long-term commitment to regulatory compliance and market expansion.
