Kraken Secures MiFID License, Expands Crypto Derivatives in EU

Cryptocurrency exchange Kraken has secured a significant regulatory milestone, obtaining a Markets in Financial Instruments Directive (MiFID) license through its Cyprus-regulated entity, Cypriot Investment Firm. This license enables Kraken to offer a range of derivatives products within the European Union, further expanding its services and strengthening its presence in the region.

The Cyprus Securities and Exchange Commission (CySEC) regulates Cypriot Investment Firm, making the acquisition of this license a strategic move for Kraken. The exchange prioritized MiFID approval due to strong demand for crypto derivatives trading from European market participants. Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange, emphasized the importance of the European market, stating, “As we continue to expand our services across the globe, our focus on the European market remains a top priority.”

Kraken’s European expansion is part of a broader trend of institutional interest in the region. The European Union’s introduction of the Markets in Crypto Assets Regulation (MiCA) has standardized cryptocurrency regulation across the region, encouraging compliance among market participants. However, some major firms have struggled to meet MiCA’s requirements, leading to potential market exits. Kraken, Coinbase, and Crypto.com have all decided to delist Tether’s $140 billion U.S. dollar-pegged stablecoin (USDT) due to MiCA requirements.

Kraken’s acquisition of a MiFID license adds to its growing list of European regulatory approvals. The crypto exchange has also secured a crypto broker license in the Netherlands via Dutch broker Coin Meester, as well as several partnerships with German blockchain clients to list services. While the U.S. has commanded much of the global crypto spotlight, especially following President Donald Trump’s return to office, Europe has also attracted institutional interest as demand for digital asset services increases.