TLDR
- Kraken secured a MiFID license through acquiring a Cypriot investment firm, approved by CySEC, enabling regulated derivatives trading across EU markets
- The exchange aims to offer regulated futures and options products, targeting sophisticated crypto investors in Europe
- Kraken has relaunched staking services in 37 US states for 17 digital assets after previous regulatory challenges
- The company previously acquired Crypto Facilities in 2019, becoming the first licensed crypto futures provider in the UK
- The timeline for EU derivatives product launch is pending, with regulatory conditions still to be fulfilled
Kraken, a major cryptocurrency exchange, has obtained a Markets in Financial Instruments Directive (MiFID) license for the European Union through the acquisition of a Cypriot investment firm. The Cyprus Securities and Exchange Commission (CySEC) approved the acquisition on February 3, 2025, marking a key step in Kraken’s European expansion strategy.
The newly acquired license allows Kraken to offer regulated derivatives trading services across EU markets. This development comes as part of the exchange’s broader effort to strengthen its presence in Europe while maintaining compliance with local regulations.
Shannon Kurtas, Kraken’s co-general manager of Pro & Exchange, emphasized the company’s commitment to the European market.
“As we continue to expand globally, our focus on the European market remains a top priority,” Kurtas stated in the announcement.
The exchange plans to introduce a range of derivatives products specifically designed for sophisticated crypto investors. These offerings will include regulated futures and options products, enabling traders to gain exposure to various digital assets in ways that maximize capital efficiency.
Before launching its derivatives products in EU markets, Kraken must complete several regulatory requirements. The exchange has not yet announced a specific timeline for the rollout of these services, indicating a measured approach to meeting all necessary compliance standards.
This expansion builds upon Kraken’s previous regulatory achievements. In 2019, the exchange acquired Crypto Facilities, a platform regulated by the UK’s Financial Conduct Authority (FCA). This acquisition made Kraken the first licensed crypto futures provider in the United Kingdom.
The exchange has also made progress in other areas of its business. Recently, Kraken relaunched its on-chain staking services for US clients in 37 states and two territories. This relaunch comes almost two years after the original program was suspended due to regulatory challenges.
The updated staking service now supports 17 different digital assets, offering US users more options for participating in bonded staking activities. This development shows Kraken’s ability to adapt its services to meet regulatory requirements while maintaining product offerings.
While specific details about the planned derivatives products remain undisclosed, industry observers expect Kraken’s European derivatives portfolio to include futures, options, and structured products. These offerings will be designed to meet the needs of advanced traders in the European market.
The acquisition of the MiFID license represents a strategic move to capture opportunities in Europe’s expanding derivatives market. This allows Kraken to provide sophisticated trading tools while operating within the established regulatory framework.
Kraken’s approach to regulatory compliance has been systematic, with the exchange working to secure necessary approvals across different jurisdictions. This strategy helps ensure that its services meet local regulatory standards while providing users with access to advanced trading options.
The exchange continues to focus on maintaining high standards for security and customer experience. These priorities align with Kraken’s goal of setting industry benchmarks while expanding its service offerings.
The Cyprus-based acquisition provides Kraken with a strategic entry point into the European derivatives market. Cyprus has emerged as a hub for financial services firms seeking to operate across the EU, thanks to its regulatory framework and MiFID passport capabilities.
The approval from CySEC enables Kraken to passport its services across other EU member states, potentially reaching a broader base of European traders and investors. This regulatory clearance positions Kraken to compete more effectively in the European crypto derivatives market.
The latest developments at Kraken come at a time when cryptocurrency exchanges are increasingly focusing on regulatory compliance and institutional services. The exchange’s expansion in Europe through the MiFID license reflects this broader industry trend.
