- Kraken’s Irish subsidiary receives virtual asset service provider (VASP) authorization from the Central Bank of Ireland.
- With the registration in Ireland, Kraken will be able to operate in the entire EU.
- The European Parliament is voting on the Markets in Crypto Assets (MiCA) regulation.
On April 18, Kraken announced that Payward Europe Solutions, its Irish subsidiary, had been awarded VASP authorization from the Central Bank of Ireland. This authorization allows Payward Europe Solutions to provide a range of crypto-related services, including custody, trading, and exchange services, to Irish customers.
The crypto exchange reported that its Irish VASP registration demonstrates to clients and authorities that it conforms to the robust anti-money laundering (AML) and compliance standards in Europe. The registration underlines Kraken’s commitment to promoting cryptocurrency usage in Europe today and in the future.
Mark Jennings, Kraken’s Head of European Operations, 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.”
Jennings added that Kraken has always placed its clients’ needs first and adheres to regulatory requirements by providing a compliant trading environment that uses industry-leading customer support, strong security measures, and a market-leading position in liquidity and volume for EUR crypto pairings. With the VASP registration and the expansion of its local team in Ireland, it strengthens its dedication to Irish clients to access a wide range of cryptocurrency assets.
VASP Authorization Amid EU Vote On MiCA Regulations
This remarkable accomplishment occurs as the European Union (EU) prepares to hold its crucial vote on the much-awaited Markets in Crypto Assets (MiCA) regulation. The implications of the MiCA legislation for crypto asset service providers (CAPs) will be significant, and it is anticipated to pass after early voting reveals solid bipartisan support. Any CASP operating in the EU will need to register with one of the union’s 27 recognized jurisdictions should the legislation be approved.
The VASP authorization is handy for Kraken, as it becomes the third registered outlet after Gemini and Coinbase as the only providers of cryptocurrency services. The VASP permission was granted to the other two exchanges in July and December 2022, respectively.
A Positive Development Cryptocurrency Industry
Kraken’s VASP authorization is part of the new regulations introduced by the Central Bank of Ireland to ensure that virtual asset service providers meet the same anti-money laundering and counter-terrorist financing standards as traditional financial institutions.
Kraken is one of the world’s largest cryptocurrency exchanges, and the VASP authorization from the Irish regulator is a significant milestone for the company. It allows Kraken to expand its operations in Europe and provide its customers with a broader range of services.
Overall, the VASP authorization is a positive development for Kraken and the broader cryptocurrency industry. It provides customers with greater confidence and security when dealing with virtual asset service providers and helps to promote the adoption of cryptocurrencies as a legitimate asset class.
