Key Insights
- Kraken obtained a MiFID license in the EU via a Cypriot investment firm acquisition, while Coinbase received a VASP registration from the UK’s FCA, enabling both firms to expand their services in these regions.
- The approvals position Kraken and Coinbase for growth as the EU’s MiCA regulations roll out in late 2024 and the UK introduces a comprehensive crypto framework in early 2025.
NEW YORK (MarketsXplora) – Leading U.S.-based cryptocurrency exchanges Kraken and Coinbase have secured major regulatory approvals, paving the way for expanded operations across the European Union and the United Kingdom, respectively. The approvals mark a significant milestone as both regions move toward more comprehensive crypto regulations.
Kraken Secures MiFID License, Coinbase Registers as UK VASP
Kraken obtained a Markets in Financial Instruments Directive (MiFID) license in the EU by acquiring a Cypriot investment firm regulated by the Cyprus Securities and Exchange Commission. This allows the exchange to offer compliant derivatives products to advanced crypto traders across select EU markets. Meanwhile, Coinbase received a Virtual Asset Service Provider (VASP) registration from the UK’s Financial Conduct Authority (FCA), enabling it to offer crypto and fiat services in the country.
The approvals come as Europe and the UK prepare to implement sweeping regulatory changes. The EU’s Markets in Crypto-Assets (MiCA) regulations will roll out in two phases starting in late 2024, while the UK is set to introduce a comprehensive crypto regulatory framework in early 2025. With these approvals in place, Kraken and Coinbase are now positioned to expand their services under these evolving regulatory regimes.
“As we continue to expand our services across the globe, our focus on the European market remains a top priority,” said Shannon Kurtas, Kraken’s Co-General Manager of Pro and Exchange, in a company statement. “This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors.”