Kraken Secures Key Approval in Ireland as EU Votes on Crypto

Kraken Secures Key Approval in Ireland as EU Votes on Crypto

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Kraken receives key regulatory approval from the Bank of Ireland ahead of EU vote.

European Parliament is set to vote on the Markets in Crypto Assets (MiCA) regulation.

Kraken’s registration in Ireland will enable it to operate in the entire EU. 

As the EU prepares for sweeping crypto regulation, Kraken is in the clear. The exchange has stepped over a major regulatory hurdle in Ireland. 

On Tuesday, April 18, Kraken announced registering its subsidiary, Payward Europe Solutions Limited, with the Central Bank of Ireland as a Virtual Asset Service Provider (VASP). 

The authorization comes in the same week that the EU is voting on a landmark piece of crypto regulation that will significantly impact crypto exchanges. 

Sweeping EU Regulation On Exchanges

The European Parliament is voting on the Markets in Crypto Assets (MiCA) assets regulation, on Tuesday April 20. This sweeping regulation aims to establish a formal regulatory framework for the digital asset industry. 

The law will likely pass with widespread support, since lawmakers from multiple parties have already signaled their support for the regulation. 

The regulation would allow crypto exchanges and digital wallet companies to offer regulated services. It would also require stablecoin issuers to hold significant reserves. Moreover, crypto exchanges would be to register with a central bank of a member state. This is exactly why Kraken’s regulatory approval was key. 

Kraken Committed to Working With Regulators

Kraken’s registration in Ireland ensures that it can continue to operate under the new regulatory regime. The exchange also claims that it shows its commitment to working with regulators in all jurisdictions. 

“Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies,” said Mark Jennings, Kraken’s Head of European Operations.

 “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,” Jennings added. 

On the Flipside

Kraken is not on good terms with regulators in all jurisdictions. In February, the exchange settled a lawsuit with the US Securities and Exchange Commission. Kraken agreed to pay a $30 million fine and shut down its staking services. 

European Union has a mixed record when it comes to crypto. For one, EU regulators are not cracking down on crypto like the SEC. However, the EU has signaled its opposition to crypto mining

Why You Should Care

As the EU moves towards comprehensive crypto regulation, Kraken’s move highlights the importance of compliance. It also showcases what other crypto exchanges are going to have to do soon. 

Read more about the EU’s latest findings on crypto: 

Crypto Bans Don’t Stop the Darknet Drug Trade: EU Report

Read about Intel’s decision to stop production of its Bitcoin mining chips: 

Intel Ends Its Brief Stint in Crypto Mining

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