Kraken claims that the authorization to operate in Ireland signals its commitment to comply with all European regulations.
The Central Bank of Ireland (CBI) grants crypto exchange Kraken's Irish subsidiary, Payward Europe Solutions, the virtual asset service provider (VASP) authorization.
According to the announcement shared on April 18th, the new license signals Kraken's goal to follow "Europe’s most robust anti-money laundering and compliance standards."
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On top of that, the company noted that the "registration further underscores Kraken’s commitment to driving crypto adoption across Europe, now and into the future."
This significant milestone arrives just as the European Union (EU) is gearing up for its central vote on the much-anticipated Markets in Crypto Assets (MiCA) regulation.
The MiCA legislation, which is expected to pass after preliminary voting indicated strong bipartisan support, will have far-reaching implications for crypto asset service providers (CASPs). If the legislation passes, any CASP operating in the EU will have to register with one of the union's 27 authorized regulators.
With the VASP authorization now in hand, Payward Europe Solutions has joined the exclusive club of registered cryptocurrency outlets, alongside Gemini and Coinbase, who secured their authorizations in July and December 2022, respectively.
Mark Jennings, Kraken’s Head of European Operations, shared his excitement in a company's blog post. He applauded the Bank of Ireland's decision, emphasizing the importance of clear and effective regulation in mainstream crypto adoption.
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.
However, the journey hasn't been as smooth for Kraken's parent company back in the United States. The cryptocurrency exchange had to settle with the Securities and Exchange Commission (SEC) due to alleged irregularities in its staking services. Consequently, Kraken had to pay a $30 million fine and halt offering staking services to its US clients.
The VASP authorization granted to Kraken's Irish subsidiary is a testament to the company's compliance and dedication to driving crypto adoption across Europe as the region braces itself for potential regulatory changes resulting from the MiCA legislation.
