TLDR
- Kraken obtained EU derivatives trading approval via Cyprus firm acquisition and MiFID license
- The exchange plans to roll out regulated futures and options for European crypto traders
- Staking services have resumed in 37 US states after regulatory-related pause
- Kraken’s 2019 Crypto Facilities acquisition in UK laid groundwork for EU expansion
- Launch timeline remains flexible pending regulatory requirements completion
Cryptocurrency exchange Kraken has taken a major step forward in its European expansion plans by securing a Markets in Financial Instruments Directive (MiFID) license. The development, announced on February 3, 2025, came through the purchase of a Cyprus-based investment firm, with approval granted by local regulators.
The Cyprus Securities and Exchange Commission (CySEC) gave its blessing to the acquisition, opening doors for Kraken to extend its derivatives trading services throughout the European Union. This regulatory green light marks a new phase in the exchange’s growth strategy.
Under the new license, Kraken will have the ability to offer sophisticated trading products to European customers. The move aligns with increasing demand for regulated crypto derivatives services in the region, where institutional and advanced retail traders seek more complex financial instruments.
Pro & Exchange co-general manager Shannon Kurtas highlighted the strategic importance of the European market in Kraken’s global operations. The company views this expansion as crucial to its long-term growth plans, particularly in the derivatives sector.
The exchange must still complete several regulatory requirements before launching its full suite of derivatives products. While specific timelines remain under wraps, Kraken is actively working to meet all necessary conditions for market entry.
Looking back at Kraken’s regulatory journey, the exchange made its first major European move in 2019 with the acquisition of Crypto Facilities. This purchase brought with it regulation from the UK’s Financial Conduct Authority, establishing Kraken as a pioneer in licensed crypto futures trading.
Recent developments also include the revival of Kraken’s staking services for US customers. The program, now available in 37 states and two territories, allows participants to stake 17 different digital assets. This relaunch demonstrates the exchange’s ability to navigate complex regulatory environments while maintaining service offerings.
The choice of Cyprus for the MiFID license acquisition proves strategic, as the country serves as a gateway to European financial markets. Cyprus has established itself as a hub for financial services companies seeking EU-wide operations, thanks to its robust regulatory framework and MiFID passporting capabilities.
Through this license, Kraken gains the ability to passport its services across EU member states. This mechanism allows the exchange to offer its derivatives products throughout the European Economic Area while maintaining a single primary regulator.
Industry watchers anticipate that Kraken’s European derivatives offerings will include a mix of futures, options, and structured products. These instruments will be designed to meet the sophisticated needs of European traders while adhering to regulatory requirements.
The move comes at a time when cryptocurrency exchanges face increased scrutiny and regulation worldwide. Kraken’s approach demonstrates a commitment to operating within established regulatory frameworks while expanding its market presence.
Kraken’s focus on security and customer experience remains central to its expansion plans. The exchange continues to prioritize these elements as it develops its European derivatives platform and broader service offerings.
The regulatory approval through CySEC positions Kraken to compete more effectively in the European crypto derivatives market. This development could reshape the competitive landscape for regulated crypto derivatives trading in the region.
Financial product offerings under the new license will be tailored to meet the specific needs of European traders. These services will complement Kraken’s existing spot trading and staking capabilities, creating a more comprehensive trading ecosystem.
The latest expansion reflects broader industry trends toward regulated crypto services and institutional adoption. As Kraken prepares to launch its derivatives platform, it continues to work closely with regulators to ensure compliance with all applicable requirements.
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