Following Brexit, Kraken seeks new license to re-enter European market

Kraken seeks new base in Europe

Kraken is in talks with regulators in several European countries to obtain a new license to enter the European market by the end of 2021.

As explained by a Kraken spokesperson, the exchange operates in Europe through its presence in the UK and registration with the UK’s Financial Conduct Authority (FCA).

Jesse Powell, founder and CEO of Kraken, said:

“We currently offer access to our European customers through our UK regulator registered entity. We are actively exploring multiple options to obtain various European licenses following Brexit.»

Jesse Powell explained that the exchange is targeting several jurisdictions for potential regulatory approval as early as this year. Kraken has reportedly already been in discussions with several European regulators, in Malta, Luxembourg and Ireland. While discussions are ongoing, no official decision has been made as of yet.

In June 2021, Coinbase, received a license in Germany from BaFin (the German Federal Financial Supervisory Authority) to legally operate in Europe. Jesse Powell pointed out that Kraken was reluctant to follow the same path, however.

According to him, the exchange also held discussions with BaFin, but found the regulatory climate in Germany “too difficult, too restrictive and therefore too costly for the company.»

A historic 2021

Although Kraken has yet to release its latest financial results, Powell made it clear that he expects a “record year” for the company. According to him, in January and February 2021 alone, the exchange gained more users than in the entire previous year.

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In the first 6 months of the year, Kraken recorded more than $485 billion in trading volume, more than three times the volume reported in 2020, the best year in the company’s history to date.

Related story: Kraken platform plans to go public in 2022

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About the author : Florent David

Following Brexit, Kraken seeks new license to re-enter European market

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Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
All articles by Florent David.