Key Takeaways:
- Kraken secures MiFID license after acquiring a Cypriot investment firm, enabling it to offer crypto derivatives across the EU.
- Europe’s crypto sector is growing, with a $7 billion market projected to expand at a 15% annual rate until 2030.
- Competition in crypto derivatives heats up, with Kraken joining rivals like Coinbase, Crypto.com, and Bitstamp in the EU market.
Kraken, a U.S.-based cryptocurrency exchange, has secured regulatory approval to expand its crypto derivatives services across the European Union.
The company obtained a Markets in Financial Instruments Directive (MiFID) license after acquiring a Cypriot investment firm, as confirmed in a February 3 blog post.
BIG NEWS 📣
— Kraken Exchange (@krakenfx) February 3, 2025
We’re excited to announce we've obtained a MiFID license in the EU!
Yet another key milestone in our expansion strategy, allowing us to offer fully compliant derivatives products across selected EU markets.https://t.co/CkvP23KzGc
This acquisition, approved by the Cyprus Securities and Exchange Commission, allows Kraken to offer derivative products such as futures and options to experienced traders in the EU.
Founded in 2011, Kraken has been actively expanding its presence in Europe over the past two years.
The company has obtained licenses in Spain and Ireland, launched Kraken Custody in the UK, and acquired a Dutch crypto broker in 2024.
These efforts align with the European crypto market’s rapid growth, which is valued at $7 billion and expected to expand at a 15% annual rate until 2030.
Kraken will face competition from exchanges like Coinbase, Bitstamp, and OKX, which are also expanding their derivatives offerings.
The company’s move follows the EU’s introduction of the Markets in Crypto-Assets (MiCA) regulation, which aims to strengthen oversight of token issuance, stablecoins, and Anti-Money Laundering (AML) measures.
In addition to its European expansion, Kraken recently resumed its staking service in the U.S. and reported a revenue surge to $1.5 billion in 2024.