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Kraken Secures MiFID License, Expands Crypto Derivatives in EU

Coin WorldMonday, Feb 3, 2025 12:45 pm ET

1min read

Cryptocurrency exchange Kraken has secured a Markets in Financial Instruments Directive (MiFID) license through its 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 has been accelerated by this strategic move, which prioritizes MiFID approval due to strong demand for crypto derivatives trading from European market participants. Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange, stated that the firm's focus on the European market remains a top priority. Acquiring Cypriot Investment Firm to access a MiFID license adds to Kraken’s growing list of European regulatory approvals, including a crypto broker license in the Netherlands via Dutch broker Coin Meester and several partnerships with German blockchain clients to list services.

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 decided to delist Tether’s $140 billion U.S. dollar-pegged stablecoin (USDT) due to MiCA requirements.

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