Kraken, a leading cryptocurrency exchange, has been granted Virtual Asset Service Provider (VASP) authorization by the Central Bank of Ireland for its Irish subsidiary, Payward Europe Solutions. This comes at a critical time for Kraken, as the European Union is set to finalize the Markets in Crypto Assets (MiCA) regulation, which is expected to overwhelmingly pass. MiCA will require any company operating as a crypto assets service provider (CASP) in the EU to register with one of the union’s 27 authorized regulators, and Kraken’s VASP authorization in Ireland positions them to meet compliance requirements ahead of the regulation’s implementation.
Kraken is one of the largest and most trusted cryptocurrency exchanges in the world, facilitating billions of dollars in daily transactions for users all over the globe. With successful VASP registration in the European Union, Kraken can continue to provide its customers with access to an expanding suite of crypto services while being fully compliant with local laws and regulations.
Kraken, Gemini, and Coinbase are the only three cryptocurrency exchanges to have received VASP authorization in the EU. Mark Jennings, Kraken’s Head of European Operations, praised the Bank of Ireland’s decision, remarking that “Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies.” Jennings also emphasized that Kraken’s Irish VASP registration demonstrates the company’s commitment to following Europe’s most robust anti-money laundering and compliance standards.
Kraken’s recent success in Europe comes after a bumpier road in the United States. The SEC sued Kraken over alleged improprieties with its staking services, resulting in a $30 million fine and an agreement to cease offering staking services to U.S. clients. Kraken’s VASP authorization in the EU positions them to remain a leading player in the cryptocurrency space and continue to drive adoption across Europe.
If the MiCA regulation passes, it is expected to begin implementation in Q3 2024 after an 18-month transition period. Full implementation of the regulation will require all crypto assets service providers operating in the EU to be fully compliant with local laws and regulations. Kraken’s VASP authorization in Ireland prepares them to meet these compliance requirements and provide their customers with continued access to high-quality crypto services.
In conclusion, Kraken’s VASP authorization by the Central Bank of Ireland for its Irish subsidiary, Payward Europe Solutions, marks an important milestone for the cryptocurrency exchange. It positions them to meet compliance requirements ahead of the expected passage of the MiCA regulation in the European Union and continue to provide their customers with access to high-quality crypto services while being fully compliant with local laws and regulations.