Kraken In search of European License, Shortlists Three Lions.

Kraken CEO Jesse PowellKraken intends to increase its clientele in Europe.
Like its competitor Coinbase, American cryptocurrency exchange Kraken intends to extend its offerings throughout Europe. Kraken’s co-founder and CEO, Jesse Powell, stated in an interview with the German business daily The Handelsblatt that the cryptocurrency exchange is working to secure a regulatory licence in Europe and hopes to do so by the end of the year. “Our goal is to obtain a licence in a European Union nation,” Powell said the newspaper.
The exchange, which has its headquarters in San Francisco, has initiated talks with a number of continental regulators. Though a final decision has not yet been made, it has already reduced its options to Ireland, Malta, or Luxembourg for its European base. Powell, however, rejected Germany as Kraken’s European headquarters, stating that operating a corporation there would be expensive and that local Bafin regulations are too onerous and restrictive. Conversely, Coinbase obtained its Bafin licence in June.
By virtue of its subsidiary Crypto Facilities, popularly known as Kraken Futures, Kraken is already subject to UK regulation. The cryptocurrency exchange has a limited presence in Europe, but it has been unable to use its Financial Conduct Authority (FCA) licence in an EU Economic Area since the Brexit agreement was finalised last December.
Kraken claims to have six million customers and to operate in nearly 190 countries. In terms of trade volume, it is the fifth-largest cryptocurrency exchange, having been founded in September 2013. Furthermore, Kraken has continued to hold its position as one of the few cryptocurrency exchanges without ever experiencing a hack. The exchange’s management is thinking about going public the following year. Although there were few information about the possible public listing, the exchange disclosed that it will search for direct listing opportunities because the company is too big to merge with a company that simply takes orders.

Related Articles

Back to top button