Kraken Secures Fourth European Crypto License in Netherlands Amid US Regulatory Challenges
Summary:
Digital currency exchange Kraken has received its fourth European license, enabling it to offer crypto-related services in the Netherlands. The license from the Dutch Central Bank recognizes Kraken as a virtual asset service provider, complying with regulatory measures under the Regulation on Markets in Crypto-Assets. This marks Kraken's growing presence in Europe with existing licenses in Spain, Italy, and Ireland, and a subsidiary in Belgium. However, the company has faced regulatory hurdles in the US, including a lawsuit from the SEC, which was settled for $30 million in February 2023.
Digital currency marketplace Kraken has attained its fourth European license, this time in the Netherlands. A statement released on February 8 revealed the company received a license from the Dutch Central Bank as a virtual asset service provider (VASP). This certification enables Kraken to provide a range of crypto-related services, including transfers, exchange, as well as wallet and custodial offerings. VASP licenses are part of a regulatory scheme to supervise companies who offer digital asset services. They must comply with a host of requirements, including measures against money laundering and financing of terrorism, along with transparency in customer information, under the guidelines of the Regulation on Markets in Crypto-Assets (MiCA). Kraken has been establishing a presence in key European markets, with licenses in Spain, Italy and Ireland alongside the recent Dutch certification. It also delivers its services in Belgium through a licensed subsidiary. "Around 20% of the Dutch population own crypto. The country also boasts a thriving technology and start-up scene," Kraken said in the statement.
The digital exchange platform publicized its purchase of Netherlands-based Coin Meester B.V. (BCM), a crypto exchange firm, in October 2023 to widen its footprint in the state, awaiting regulatory approval. In contrast to the progress in Europe, Kraken has faced regulatory hurdles in the United States, with a lawsuit from the Securities and Exchange Commission (SEC) in November 2023 over accusations of mingling customer assets and neglecting to register as a securities exchange, broker, dealer and clearing agency. This case was similar to those brought against Binance and Coinbase earlier. In February 2023, the firm settled the matter with the SEC for the sum of $30 million, that included putting on hold its staking products and services for clients based in the US.
Published At
2/8/2024 7:30:53 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.