Crypto exchange Kraken has obtained a Markets in Financial Instruments Directive (MiFID) license in the EU. The license was obtained through the acquisition of a Cypriot Investment Firm, which was recently approved by the Cyprus Securities and Exchange Commission (CySEC), the company said in a filing.
The newly secured license will help in meeting the growing demand for secure and regulated crypto derivatives trading in the EU. The move marks the exchange’s latest European expansion, coming on the back of barely a month and a half after launching its derivatives trading in the UK.
“This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors,” said Shannon Kurtas, Kraken Co-GM of Pro & Exchange. “This acquisition reflects our confidence in the EU and underscores our commitment to providing a trusted, regulated environment for advanced crypto traders and investors,” he added.
According to a report on The Block, derivatives trading has become a core part of Kraken’s business, accounting for roughly half of its volume, whereas, globally, crypto derivatives make up about 70% to 75% of total trading activity.
Kraken’s derivatives products will now be available to users across the European Economic Area, which includes all 27 EU member states as well as Iceland, Liechtenstein, and Norway. In 2019, Kraken acquired Crypto Facilities, a U.K. FCA-regulated crypto futures platform, which later became the first licensed crypto futures platform in the U.K.