Kraken gets regulatory approval to operate in Ireland

Kraken obtained a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland on April 18.

The license allows the cryptocurrency exchange to operate legally in the country.

Kraken said the approval shows it adheres to strict anti-money laundering and anti-terrorist financing rules, adding that the license is proof of its strong compliance.

Kraken’s head of European operations, Mark Jennings, said:

“Clear and effective regulation is essential for the widespread adoption of cryptocurrencies. As we bring innovative products and services to the market, we are committed to continuing to work with European regulators to operate in compliance with sensible and forward-thinking crypto asset regulation.”

Regulatory uncertainty

The crypto industry has been in dire need of regulatory clarity for years; however, the world’s leading economies, the US and China, have taken a very cold stance towards the sector.

Although the US regulatory landscape is not locked in like China, which banned digital assets in 2021, the country’s watchdogs, particularly the SEC, have addressed the issue of regulation primarily through the app.

In recent months, the SEC has taken multiple enforcement actions against some of the most established exchanges in the country, including Kraken and Coinbase.

This has exacerbated the exodus and cross-border expansion of crypto companies in their search for a stronger footing.

Europe and Hong Kong

Europe and Hong Kong have become prime locations for cryptocurrency companies due to their proactive approach to regulation.

Europe is about to implement the Markets in Crypto-Assets (MiCA) framework, which sets rules for cryptocurrencies and the industry in general. It also places various regulatory requirements on crypto businesses and mandates disclosures for them to keep up with traditional financial institutions.

In addition, the European Parliament has also introduced the Data Law, which complements the MiCA regulation and establishes protocols for the handling of sensitive personal and business data.

While the MiCA framework and Data Act have yet to go into effect, companies have already begun seeking the necessary approvals and are expected to make further announcements in the coming months.

Similarly, Hong Kong is also on the verge of establishing a complete regulatory network for the crypto industry and is already processing applications from VASP applicants.

Hong Kong officials recently said that more than 80 companies have shown interest in establishing themselves in the city-state, while about 20 companies have already applied for a license.

The charge Kraken gets regulatory approval to operate in Ireland first appeared in CryptoSlate.

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