Kraken Exchange Seeks New EU License After Brexit: Report

Kraken exchange seeks a new EU license after Brexit so it is able to re-enter the European market while Ireland, Luxembourg, and Malta are the top choices so let’s read more in our latest crypto news.

Kraken as the biggest US exchange by trading volume is in talks with regulators in a few countries in Europe that seek to obtain a license to enter the European market by the end of 2021. As explained by the spokesperson by the exchange, Kraken is present in Europe but it currently offers more access to its European clients via the entity that is registered with the UK’s Financial Conduct Authority. While Kraken claims to comply with the EU fifth AML directive applicable requirements, Great Britain’s departure from the EU means that the exchange had to start looking for other options to enter the UK again.

“As a regulation-compliant exchange that operates in nearly 190 jurisdictions around the world, Kraken maintains proactive and constructive dialogues with regulators across the fast-maturing European crypto regulatory landscape, to remain compliant both now and in the future.”

Kraken’s founder and CEO Jesse Powell said in an interview:

“We are working on a license in an EU country.”

According to Powell, the exchange wants to enter Europe by the end of the year with Malta, Ireland, and Luxembourg among other countries to award such license. While the talks are ongoing, there’s been no decision formally up to date. Coinbase as the biggest crypto exchange in the US and Kraken’s main rival recieved the crypto custody and trading license opened a German division and armed with the license from BaFin, the exchange can offer services to customers in other countries. Powell outlined that Kraken is reluctant to follow the same path and according to him, the exchange talked with BaFin as well and found the regulatory climate in Germany too restrictive and too expansive for the company.

It was reported that Kraken was considering raising more capital that will bring the San Francisco-based company’s market cap value above $10 billion which brought speculations that Kraken will eventually go public and something that the exchange did back in April through a direct listing. Commenting on the coinbase listing, Powell confirmed that he was considering doing the same but he admitted that the initial plan could change as he was taking a new look at a traditional initial public offering. Now, the Kraken exchange seeks a new license to try and stick to this vision.