Kraken Secures EU MiFID License, Launches Regulated Crypto Derivatives

Kraken Secures EU MiFID License, Set to Launch Regulated Crypto Derivatives Trading

Cryptocurrency exchange Kraken has obtained a Markets in Financial Instruments Directive (MiFID) license through the acquisition of a Cypriot Investment Firm, approved by the Cyprus Securities and Exchange Commission (CySEC). This regulatory approval enables Kraken to offer fully compliant and regulated derivatives products to advanced crypto traders in selected EU markets, as part of its European expansion strategy. The products will provide these traders with the opportunity to work with a variety of collateral currencies and asset types, enhancing trading flexibility and efficiency.

Kraken's European expansion accelerated as the crypto exchange obtained a new digital asset license to offer more services. Kraken has secured a MiFID license through its Cyprus-regulated entity, Cypriot Investment Firm, allowing the exchange to provide derivatives products within the European Union. The Cyprus Securities and Exchange Commission regulates Cypriot Investment Firm, making the acquisition a strategic move for Kraken to strengthen its European presence.

The firm prioritized MiFID approval due to strong demand for crypto derivatives trading from European market participants, said Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange. “As we continue to expand our services across the globe, our focus on the European market remains a top priority,” Kurtas remarked in a press statement announcing the license.

Acquiring Cypriot Investment Firm to access a MiFID license adds to Kraken’s growing list of European regulatory approvals. The crypto exchange 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. The European Union’s introduction of the Markets in Crypto Assets Regulation has standardized cryptocurrency regulation across the region, encouraging compliance among market participants.

Still, some major firms have struggled to meet MiCA’s requirements, leading to potential market exits. Kraken, Coinbase, and Crypto.com decided to delist Tether’s $140 billion U.S. dollar-pegged stablecoin (USDT) due to MiCA requirements.