- Kraken has secured the Netherlands VASP regulatory License.
- The crypto exchange is expanding its European reach.
- Kraken was recently entangled in a regulatory tussle with the U.S. Securities and Exchange Commission.
Kraken, the San Francisco-based cryptocurrency exchange, has recently directed its focus to Europe in pursuit of a regulatory haven following several run-ins and sanctions with the U.S. SEC. The exchange has been on an acquisition spree from Italy to Ireland and Spain, obtaining regulatory licenses that allow it to conduct its business across the European market.
Building on this momentum, Kraken has now secured another license.
Kraken Wins Dutch License
On February 8, Kraken announced its acquisition of a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB),
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The approval allows the exchange to provide crypto trading and exchange services to retail clients and professional traders in the Netherlands, which has one of Europe’s highest crypto adoption rates.
Kraken’s win follows its October proposal to acquire the Netherlands-based crypto exchange Coin Meester B.V. (BCM), in efforts to establish a solid base as a service provider to domestic investors in the regions.
Kraken’s Managing Director Europe, Brian Gahan, emphasized the importance of the Dutch license win in the exchange’s ongoing efforts to expand its influence across European jurisdictions.
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“With the addition of the Dutch VASP registration, our European growth strategy continues to accelerate,” he stated.
Kraken’s win powers are expanding its global presence despite the intensifying regulatory heat from domestic agencies.
Kraken-SEC Legal Drama
In November, the SEC accused Kraken of selling “crypto asset securities” without having registered the functions with the regulator as required by the law.
The SEC’s allegations came less than a year after the exchange agreed to a $30 million settlement with the commission following initial allegations that the exchange violated U.S. federal securities laws.
“Kraken allegedly provides a marketplace that brings together the orders for securities of multiple buyers and sellers using established, non-discretionary methods under which such orders interact, and thus operates as an exchange,” the commission stated.
The SEC labeled the exchange as a broker for allegedly engaging in effecting securities transactions for its customers’ accounts and a dealer for buying and selling securities for its own account with an applicable.
U.S. Senator Cynthia Lummis scrutinized the commission’s enforcement actions, asserting that they constitute a “regulation via enforcement” approach that only causes consumer harm.
Read more on the SEC’s regulatory standards and calls for an overturn:
SEC Is “Unethical and Unprofessional:” U.S. Senators
Find out more about the regulatory debacle involving Kraken and the SEC:
Kraken Co-Founder Slams SEC for Going “Back for Seconds”
