United States-based cryptocurrency exchange Kraken received its virtual asset service provider authorization from the Central Bank of Ireland.
Payward Europe Solutions, an Irish subsidiary of Kraken registered in Dublin, was awarded virtual asset service provider authorization from the Central Bank of Ireland.
The VASP authorization comes at a critical time for Kraken. The European Union is scheduled to conduct its final vote on the long-awaited Markets in Crypto Assets regulation.
The MiCA legislation is expected to pass after preliminary voting showed overwhelming bipartisan support. If it does, the resulting changes will require any company operating as a crypto assets service provider in the EU to register with one of the union’s 27 authorized regulators.
Kraken, or rather its Irish subsidiary Payward Europe Solutions, has received such qualification, becoming only the third cryptocurrency outlet so registered. Exchanges Gemini and Coinbase received their VASP authorization in July and December of 2022, respectively.
Kraken’s head of European operations, Mark Jennings, lauded the Bank of Ireland’s decision in a company blog post, stating that “Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies.” Jennings also intimated that the designation was a testament to the company’s legitimacy.
Back in the U.S., the road’s been bumpier for the Kraken cryptocurrency exchange, as it was forced to settle with the Securities and Exchange Commission over alleged improprieties with its staking services. As a result of the lawsuit, Kraken paid $30 million in fines and agreed to cease offering staking services to U.S. clients.
