Kraken Launches Regulated EU Derivatives Trading With MiFID License

Kraken, a US-based cryptocurrency exchange, announced that the European Union (EU) has awarded its platform a prestigious Markets in Financial Instruments Directive (MiFID) license. This key milestone underscores the platform’s unwavering commitment to regulatory excellence and transparency.

On Monday, Kraken posted on its X handle that its landmark achievement is part of its key expansion strategy. The license will enable the exchange to offer derivative services that are fully compliant across the EU markets.

Kraken Paves Way for Regulated Crypto Derivatives Trading

Meanwhile, Kraken acquired the newly obtained license through a Cypriot Investment Firm, recently approved by the Cyprus Securities and Exchange Commission (CySEC). Meanwhile, Kraken aims to enter Europe with this key expansion, as it is one of the most established markets for crypto derivatives trading.

Notably, the now EU-regulated platform will be able to offer fully compliant derivatives products, furthering its strategy to meet the dynamic demands of advanced investors.

“This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors, ”Shannon Kurtas, Kraken’s Co-GM of Pro & Exchange, said.

The services will equip advanced traders with scalability and optimized capital for a wider selection of assets while using different collateral currencies to back their positions. However, Kraken is yet to launch its products in the local EU markets, as the decision to meet the conditions will follow in the coming months.

Is Binance Re-entering the EU?

In a tweet, Binance, the leading cryptocurrency exchange by trading volume, announced its partnership with xMoney, a web3 payment solution designed to modernize the finance and payments industry. The strategic collaboration aims to enhance scalability and initiate easy crypto payments, and it will feature over 20,000 merchants in Europe.

It bears mentioning that Binance had already secured licenses in up to seven EU member states, including France, Italy, Lithuania, Spain, Cyprus, Poland, and Sweden. However, in July 2023, it exited at least three due to regulatory difficulties following the now-implemented Markets in Crypto-Assets (MiCA) framework.

Notably, this strategic move could be part of Binance’s plan to recapture a considerable portion of the European market, especially given efforts from other high-caliber exchanges. Meanwhile, it must contend with the stringent MiCA rules, which mandate more rigid operating requirements in the new regime.