Kraken Secures MiFID License, Expands EU Derivatives Offering

Crypto exchange Kraken has secured a significant regulatory milestone by obtaining a Markets in Financial Instruments Directive (MiFID) license through its Cyprus-regulated entity, Cypriot Investment Firm. This approval allows Kraken to offer derivatives products within the European Union, further expanding its services 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 to strengthen its European presence. The crypto 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, stated, “As we continue to expand our services across the globe, our focus on the European market remains a top priority.”

Obtaining a MiFID license adds to Kraken’s growing list of European regulatory approvals. The crypto exchange has also secured a crypto broker license in the Netherlands via Dutch broker Coin Meester and established several partnerships with German blockchain clients to list services. While the U.S. has commanded much of the global crypto spotlight, 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 (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 decided to delist Tether’s $140 billion U.S. dollar-pegged stablecoin (USDT) due to MiCA requirements. Despite these challenges, Kraken’s latest regulatory achievement demonstrates its commitment to expanding its services in the European market and complying with relevant regulations.