"Kraken Secures EU MiFID License, Expands Derivatives Offering"

Cryptocurrency exchange Kraken has made significant strides in expanding its European operations, securing a crucial Markets in Financial Instruments Directive (MiFID) license through the acquisition of a Cypriot investment firm. The Cyprus Securities and Exchange Commission (CySEC) approved the acquisition on February 3, 2025, enabling Kraken to offer regulated derivatives trading services across EU markets.

This development is part of Kraken's broader strategy to strengthen its presence in Europe while maintaining compliance with local regulations. The exchange aims to introduce a range of derivatives products, including regulated futures and options, specifically designed for sophisticated crypto investors in the region. Before launching these products, Kraken must complete several regulatory requirements, with a specific timeline for the rollout yet to be announced.

Kraken's European expansion builds upon its previous regulatory achievements. In 2019, the exchange acquired Crypto Facilities, a platform regulated by the UK's Financial Conduct Authority (FCA), making Kraken the first licensed crypto futures provider in the United Kingdom. Additionally, Kraken recently relaunched its on-chain staking services for US clients in 37 states and two territories, supporting 17 different digital assets.

The acquisition of the MiFID license represents a strategic move for Kraken to capture opportunities in Europe's expanding derivatives market. This allows the exchange to provide sophisticated trading tools while operating within the established regulatory framework. Kraken's approach to regulatory compliance has been systematic, working to secure necessary approvals across different jurisdictions to meet local standards while providing users with access to advanced trading options.

In a separate development, Coinbase, another major cryptocurrency exchange, has expanded its UK operations with the receipt of a Virtual Asset Service Provider (VASP) license. This approval enables Coinbase to offer digital asset trading services to both retail and institutional clients in the UK, marking a major expansion of its operations in Europe's financial hub.

The new license allows Coinbase to provide digital asset trading services to both retail and institutional customers in the UK, building upon the existing presence of Coinbase Payments, which has been offering e-money services in the country since 2018. The approval comes after regulators completed an investigation into Coinbase Payments regarding unintentional breaches of a voluntary agreement made with British authorities in late 2020.

Coinbase has also strengthened its advisory board with several high-profile appointments,