According to reports, Kraken could have European regulatory jurisdictions in countries such as Malta, Luxembourg, or Ireland.
Kraken, a major cryptocurrency exchange based in the United States, plans to expand its presence into Europe. This follows Coinbase’s footsteps.
Kraken co-founder and CEO Jesse Powell said that his firm is actively working on receiving a European license, targeting several local jurisdictions for a potential regulatory approval already this year.
In a Tuesday interview with German business news agency The Handelsblatt, Powell noted that Kraken has been in talks with multiple European regulators, with countries like Malta, Luxembourg, and Ireland being the most likely jurisdictions to license the U.S. crypto exchange.
According to reports, the CEO stated that Kraken had not yet made a decision about its European regulatory jurisdiction. However, the company still plans to acquire a license before the end of 2021. Kraken has been previously providing some services for users in European countries, launching the Kraken mobile app in Europe in January 2021.
Kraken, one of the largest crypto exchanges in the world, is currently operating in almost 190 countries around the globe, according to a spokesperson for Kraken. We currently provide access to our European clients through our UK FCA-registered entity. This ensures that we comply with all 5AMLD requirements. The representative said that they are currently exploring various options to ensure compliance, including actively seeking out European licenses.
The news comes soon after Coinbase’s European arm received a crypto license from Germany’s Federal Financial Supervisory Authority (BaFin) in June. This license allowed Coinbase’s local branch to legally allow the exchange of virtual currency against legal tender. The company had been previously providing a range of crypto services to European users as well.
Launched in September 2013, Kraken is the fifth-largest cryptocurrency exchange worldwide at the time of writing, with daily trading volumes amounting to $1.2 billion, according to data from crypto tracking source CoinGecko. The company’s biggest rival, Coinbase, went public with a direct listing on the Nasdaq exchange in mid-April. Powell claims that Kraken is more serious about an initial public offering after Coinbase’s Nasdaq debut. The exchange plans to list publicly before 2022.