The European Union’s (EU) Markets in Crypto-Assets (MiCA) license is now one of the top crypto regulatory frameworks. It is spreading a new wave of robust rules for crypto operations in its 27 member countries, and guess what? Crypto exchange Kraken secures the MiCA license from the Central Bank of Ireland (CBI). This enables the exchange to offer regulated services to clients across all 30 European Economic Area (EEA) member states.
For Kraken executives, the MiCA license from Ireland is a crown jewel in their crypto journey. “It’s a powerful signal of Kraken’s commitment to expanding the crypto ecosystem through responsible innovation,” said Arjun Sethi, co-CEO of Kraken. His highlight is also on considering trust as the most valuable currency in crypto, and it is something that we earn.
How will Kraken benefit from the MiCA license?
Regulatory clarity and compliance
Following a comprehensive regulatory compliance helps an exchange to start its crypto journey smoothly and continue providing legitimate crypto services. The MiCA framework has strict operational standards that reinforce Kraken’s reliability in the market.
Market reach hikes in the EEA
The EU’s MiCA is not simply a regulatory body that sheds light on how a crypto platform should operate in the region, but it ensures a wider market reach for the company. The CBI permits Kraken to provide regulated crypto services such as spot trading, derivatives, and payments across all 30 EEA. The crypto exchange does not have to receive operating approval from each of the countries; instead, a single approval from Ireland makes it efficient to work across the regions.
Winning consumer trust and protection
A crypto platform backed by a firm regulatory body means it earns more user trust and protection. Consumers, including retail, institutional, and professional clients, will undoubtedly come to such licensed companies as they have a badge of credibility.
Competition on track
As crypto exchanges, Coinbase, Crypto.com, and OKX have already secured MiCA licenses. When Kraken joins this team, it is a competition for the platform to position itself as a key leader in the European crypto market.
Product offerings go broader
Kraken has the MiCA license, but not that alone; it has achieved Markets in Financial Instruments Directive (MiFID) and Electronic Money Institution (EMI) licenses. This is a benchmark gain for Kraken as it can expand its crypto offerings, like regulated payment solutions and derivatives.
Kraken holds a VASP license
An official statement by Kraken read that the company already holds Virtual Asset Service Provider (VASP) registrations in major European markets, including Ireland, France, Belgium, Italy, Poland, the Netherlands, and Spain. In 2013, the exchange introduced the first BTC/EUR trading pair, and now, it’s the most “liquid and trusted for euro trading”.
Blockchain companies are eagerly looking into securing crypto regulatory licenses in different countries. The EU has MiCA, and Dubai has the Virtual Assets Regulatory Authority (VARA). Meanwhile, Singapore has the Payment Services Act (PSA), and the Australian Securities and Investments Commission (ASIC), which are crypto laws. However, VARA and MiCA are unique because they hold a unified, comprehensive legal framework that is completely dedicated to crypto regulation.
