The American cryptocurrency exchange Kraken plans to enter the European market by the end of 2021 and is working on obtaining a license to operate in the EU countries.
According to Kraken CEO Jesse Powell, the exchange plans to obtain a license from EU regulators and is in separate negotiations with regulators in Malta, Luxembourg and Ireland, which are among Kraken’s priority markets. Powell clarified that the company has yet to make a decision on its potential European regulatory jurisdiction.
Until recently, the exchange was introduced to the European market through its London-based Crypto Facilities subsidiary. Kraken has been authorized as a cryptocurrency derivatives trading platform and regulated by the UK Financial Conduct Authority. However, after the UK left the EU, Kraken’s EU license became invalid.
In June, Kraken’s rival Coinbase was licensed by the German Federal Agency for Financial Supervision (BaFin) to provide crypto custody services. Powell said Kraken was also in talks with BaFin, but local regulation proved too complex, full of restrictions, and ultimately too expensive for the company.
The exchange is also exploring the possibility of entering the stock market with the help of a specialized company for targeted mergers and acquisitions (SPAC) or through an initial public offering (IPO).
