Kraken Secures MiFID II License for EU Crypto Derivatives

Kraken, a leading cryptocurrency exchange, has achieved a significant milestone by securing a MiFID II license, which allows it to operate under the EU's Markets in Financial Instruments Directive II (MiFID II) framework. This regulatory framework is designed to enhance investor protection and market transparency, making Kraken one of the few exchanges to hold a full investment license in the European ecosystem.

With the MiFID II license, Kraken can now offer a comprehensive range of regulated derivatives products, including fixed-term futures and perpetual contracts on Bitcoin, Ether, and over 100 pairs. This move grants European investors unprecedented access to crypto derivative products within a regulated framework, a significant milestone previously reserved for institutional players. The license, obtained through Kraken's Cypriot subsidiary Payward Europe Digital Solutions (CY) Ltd., ensures that all transactions are processed within a regulated framework, in compliance with European requirements.

The MiFID II directive imposes a high level of transparency, protects clients through strict governance requirements, and mandates segregation of funds. These standards are usually reserved for traditional financial services, but Kraken has successfully met these criteria, positioning itself as a pioneer in the crypto industry. With the upcoming Markets in Crypto-Assets (MiCA) regulation in 2025, Europe is preparing to globally regulate all crypto services, making the region one of the most demanding but also the clearest in terms of regulation. Kraken's early adoption of these standards places it at the forefront of this regulatory landscape.

For Kraken traders, this development means access to a secure, liquid, and institutionally compliant framework. Kraken’s order books regularly exceed 1 billion dollars in daily volume, and depending on the country of residence, retail clients can benefit from leverage up to ×10, with regulated margin requirements. Additional guarantees include segregated accounts, MiFID suitability tests, and post-trade reports, ensuring that Kraken’s environment meets institutional standards while remaining accessible to informed traders.

Kraken's commitment to compliance does not stop at regulatory adherence. The platform incorporates several differentiating services, including regular cryptographic audits and certified infrastructure to ensure fund security, human customer support available 24/7 in multiple languages, and an all-in-one mobile app enabling recurring purchases, instant payments, and portfolio management via an intuitive dashboard. This comprehensive approach ensures a smooth user journey, from the first deposit to taking a position on a futures contract.

Obtaining the MiFID II license establishes Kraken as the reference platform for European traders looking for security, liquidity, and compliance. This strategic move not only enhances Kraken's credibility but also positions it as a trusted provider of financial services in a region known for its rigorous regulatory framework. By operating under MiFID II, Kraken can offer its services to a broader range of clients, including those who may have been hesitant to engage with unregulated platforms. This development is expected to have a positive impact on the overall crypto derivatives landscape, as it provides a more secure and transparent trading environment for users, likely attracting more institutional investors to the crypto market.