A recent statement conveyed by Kraken confirmed that the subsidiary of the San-Francisco headquartered crypto exchange secured approval for the service provider license.
Ireland Grants Kraken Service Provider License
The wholly owned subsidiary, Payward Europe Solutions, received the virtual asset service provider license from the Central Bank of Ireland. The receipt of the license marks a remarkable milestone for the crypto exchange to establish legal operations within the country.
Kraken’s statement conveyed on April 18 lauded the achievement of the VASP license as recognition of the exchange’s regulatory compliance in Ireland. Besides, the approval signals belief in Kraken’s adherence to antiterrorism financing and antimony laundering rules.
Mark Jennings lauded the license as yielding regulatory clarity on crypto adoption and operation scope in his executive duty of heading Kraken’s European operations. He added that it signals the beginning of the pursuit of partnering with EU regulators to optimize the virtual assets landscape.
Jennings lauded Ireland’s milestone in delivering an effective regulatory framework to guide mainstream crypto adoption. He restated the Kraken’s commitment to release innovative products and tech-backed services without compromising its obligation to partner with EU regulators. Doing so is critical to ensure the company operates compliantly under principles of legal futurism regarding crypto assets.
Jennings reaffirmed Kraken’s daily operations prioritize delivering compliant trading experiences founded upon superior customer services and security protocols. Besides, the EU head indicated that Kraken would leverage its market-leadership position in sustaining liquidity and transaction volume to accommodate EUR crypto pairs.
Holding the VASP license demands Kraken continually welcome supervision by regulators and representatives of the Irish government. Curtis Ting, who serves as the exchange’s managing director overseeing global operations, lauded the clarity in Irish.
Ting decried the regulatory hurdles confronted in New York, making it challenging to obtain the Bitlicense that serves as the state’s certification for crypto firms. On the contrary, Irish regulatory authorities demonstrate a superior understanding of crypto. Besides, Ireland remains proactive when implementing crypto laws with sufficient clarity.
Enforcement Actions Pushing Crypto Firms Outside US
The news of Kraken’s operating license approval in Ireland coincides with the sustained enforcement action imposed against crypto operators by US regulatory agencies. The US regulators portray a heavy-handed approach to regulating the digital asset sector through enforcement.
While the US is yet to replicate the blanket ban imposed by China towards crypto, the Securities and Exchange Commission (SEC) is leading the onslaught targeting crypto firms and exchanges. Kraken is among the major crypto exchanges that have confronted the wrath of the enforcement.
Kraken crypto exchange incurred a $30 million fine besides closing the staking-as-a-service program targeting US clients in February 2023. Previously, Kraken settled a $360000 fine imposed by the Office of Foreign Assets Control (OFAC). The November 2022 fine arose from the alleged violation of sanctions imposed by the OFAC against Iran.
Besides Kraken, US regulators are at loggerheads with several crypto exchanges, including Binance, Bittrex and Ripple. The charges arise from an alleged violation of exchange, securities and foreign assets laws.
Europe and Hong Kong Emerge as Preferred Destination for Crypto Firms, Attracted by Regulatory Clarity
The increased regulatory scrutiny and absence of clarity are compelling digital asset businesses to pursue operations outside the US. A notable destination for crypto exchange firms is ditching the US market for Europe.
Executives of the companies, including Binance, Kraken and Coinbase, acknowledge Europe is set to accomplish regulatory clarity towards implementing the Markets in Crypto Assets (MiCA) framework to guide crypto firms seeking to establish operations in the region. The MiCA legislation is set to position digital asset operations with conventional financial institutions.
Hong Kong is set to rival Europe in becoming a global crypto hub and is currently processing applications for 20 companies. The Hong Kong officials acknowledged that over 80 firms had sought interest to establish operations in the city-state.
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