- Kraken receives key regulatory approval from the Bank of Ireland ahead of EU vote.
- European Parliament is set to vote on the Markets in Crypto Assets (MiCA) regulation.
- Kraken’s registration in Ireland will enable it to operate in the entire EU.
As the EU prepares for sweeping crypto regulation, Kraken is in the clear. The exchange has stepped over a major regulatory hurdle in Ireland.
On Tuesday, April 18, Kraken announced registering its subsidiary, Payward Europe Solutions Limited, with the Central Bank of Ireland as a Virtual Asset Service Provider (VASP).
The authorization comes the same week the EU votes on a landmark piece of crypto regulation that will significantly impact crypto exchanges.
Sweeping EU Regulation on Exchanges
The European Parliament is voting on the Markets in Crypto Assets (MiCA) assets regulation on Tuesday, April 20. This sweeping regulation establishes a formal regulatory framework for the digital asset industry.
The law will likely pass with widespread support since lawmakers from multiple parties have already signaled their support for the regulation.
The regulation would allow crypto exchanges and digital wallet companies to offer regulated services. It would also require stablecoin issuers to hold significant reserves. Moreover, crypto exchanges would be to register with a central bank of a member state. This is precisely why Kraken’s regulatory approval was key.
Kraken Committed to Working with Regulators
Kraken’s registration in Ireland ensures it can continue operating under the new regulatory regime. The exchange also claims that it is committed to working with regulators in all jurisdictions.
“Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies,” said Mark Jennings, Kraken’s Head of European Operations.
“As we bring innovative products and services to market, we’re committed to continuing to work with European regulators to operate compliantly under sensible, forward-looking crypto asset regulation,” Jennings added.
On the Flipside
- Kraken is not on good terms with regulators in all jurisdictions. The exchange settled a lawsuit with the US Securities and Exchange Commission in February. Kraken agreed to pay a $30 million fine and shut down its staking services.
- European Union has a mixed record when it comes to crypto. For one, EU regulators are not cracking down on crypto like the SEC. However, the EU has signaled its opposition to crypto mining.
Why You Should Care
As the EU moves towards comprehensive crypto regulation, Kraken’s move highlights the importance of compliance. It also showcases what other crypto exchanges will have to do soon.
Read more about the EU’s latest findings on crypto:
Read about Intel’s decision to stop production of its Bitcoin mining chips: