Kraken Secures Coveted EU License—Crypto’s Regulatory Floodgates Are Opening
Another domino falls in crypto's march toward mainstream legitimacy.
Kraken just joined the elite club of exchanges greenlit under Europe's tough new MiCA framework—proving even regulators can't ignore the sector's gravitational pull.
The license arms Kraken to operate across all 27 EU states, but let's be real: compliance costs will get passed straight to users. Traders, meet your new 'regulatory convenience fee.'
One cynical take? Watch traditional banks suddenly 'discover' blockchain now that Brussels is handing out golden tickets.
An eye on Europe
The approval comes just a week after rival exchange Coinbase announced it had received a similar license in Luxembourg. Both moves highlight how major crypto platforms are racing to align with MiCA ahead of its phased implementation.
MiCA, which has been fully enforced since the end of last year, introduced a unified regulatory regime for crypto asset service providers across the EU.
However, in recent weeks, the ability of firms licensed in one member state being able to offer their services across the entire bloc without needing separate approvals elsewhere has drawn criticism.
Some industry participants and regulators warn it may encourage firms to seek approval in jurisdictions with lighter-touch regulatory regimes, then expand operations more broadly, an issue that has also been seen in other industries.
Peter Curk, CEO of UK-based ICONOMI, previously warned that this could lead to a "race to the bottom" in regulatory enforcement standards.
The European Securities and Markets Authority is currently reviewing Malta's licensing practices and is expected to release a report on its findings.
Kraken already holds VIRTUAL Asset Service Provider registrations in Ireland, Belgium, France, Italy, the Netherlands, Poland, and Spain.
Edited by Sebastian Sinclair
