Kraken wins EU license to expand derivative services

Kraken’s European expansion accelerated as the crypto exchange obtained a new digital asset license to offer more services.

Kraken has secured a Markets in Financial Instruments Directive 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.