- MiFID license allows Kraken to offer crypto derivatives to professional EU consumers.
- Expanding its presence, Kraken gained licenses in Spain and Ireland and acquired a Dutch firm.
- Entering the competitive derivatives market, Kraken faces rivals like Bitstamp and Coinbase.
The California-based cryptocurrency exchange service providing firm Kraken has extended operations across Europe. This license gives the company operating license in the European Union and is recognized as the Markets in Financial Instruments Directive (MiFID). It enables it to provide crypto-derivative products to professionals with various offerings.
MiFID License Acquisition
According to a blog post on Monday, the move was achieved by acquiring a Cypriot investment firm. The Cyprus Securities and Exchange Commission (CySEC) approved the transaction. Thus, with the MiFID license, the exchange can legally provide financial products, such as futures and cryptocurrency options, that are best suited for knowledgeable investors.
Established in 2011, Kraken has gradually expanded its operations in Europe. In the last two years, the exchange got licenses in Spain and Ireland, launched its custody services in the UK, and bought a Dutch cryptocurrency brokerage in September 2024. These steps align with the growing EU cryptocurrency, which, with a growth rate of around 15%, can reach $6.9 billion by 2033.
EU Crypto Regulation Trends
Essentials of regulation of the crypto industry have increased in some European Union countries. Some of the concerns are anti-money laundering (AML), token issuance, and regulation of stablecoins, which are the objectives of MiCA. This suggests that the Asia-Pacific region is keen on applying intense pressure on the cryptocurrency market as global exchanges, such as Crypto.Com and OKX, have been granted a MiCA license.
Kraken’s entry into the crypto derivatives market only proves that the company sees Europe as the region of sophisticated crypto trading. In this market segment, the exchange faces stiff competition from leading exchanges, such as Bitstamp, Backpack, D2X, and Coinbase.
Related: Kraken Donates $111K in BTC to Silk Road Founder Ulbricht
Futures and options will be classified as derivatives because they depend on the price of cryptocurrency assets. While these items are preferred, particularly among professional brokers, their volatility escalates the risk involved.
This comes after Kraken has offered the service in the substance of staking service recently after the firm stopped conducting the service in 2018 due to the legal case with the SEC. Further, with improvement in revenue, it recorded $1.5 billion in 2024 in the exchange.
