Kraken Obtains a License from CBI as EU Approves New Cryptocurrency Regulatory Rules

On Tuesday, Kraken announced that its subsidiary Payward Europe Solutions Limited has registered with the Central Bank of Ireland (CBI) as a Virtual Asset Service Provider (VASP).

Meanwhile, on Thursday, the European Parliament voted on the Markets in Crypto Assets (MiCA) Regulation and EU countries have given their approval. This landmark crypto regulation is expected to have a significant impact on cryptocurrency exchanges.

The EU has also urged other countries to copy its rules for crypto assets.

The regulation allows cryptocurrency exchanges and e-wallet companies to offer their services under regulation, while requiring stablecoin issuers to hold significant reserves. Moreover, cryptocurrency exchanges must be registered with the central banks of member states, which is why Kraken's registration in Ireland is of key importance.

Kraken's registration in Ireland ensures that the exchange will continue to operate under a regulatory framework, and the company has stated that it will continue to adhere to the work of regulators in each jurisdiction.

Mark Jennings, Head of European Operations in Kraken, said: "Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies. As we bring innovative products and services to market, we’re committed to continuing to work with European regulators to operate compliantly under sensible, forward-looking crypto asset regulation."

In February, U.S. Securities and Exchange Commission (SEC) charged Kraken offered and sold a crypto asset staking-as-a-service program without registration.