U.S.-based crypto exchange Kraken has acquired a Markets in Financial Instruments Directive (MiFID) license, allowing it to offer crypto derivatives across the European Union. The license was obtained through the acquisition of a Cypriot investment firm, recently approved by the Cyprus Securities and Exchange Commission, according to a February 3 blog post from the company.
Kraken’s Growing Presence in Europe
Founded in 2011, Kraken has been steadily expanding its footprint in Europe over the past two years. The exchange has secured licenses in Spain and Ireland, launched Kraken Custody in the UK, and acquired a Dutch crypto broker in September 2024. These moves reflect Kraken’s commitment to tapping into Europe’s rapidly growing crypto market, which is valued at $7 billion and projected to grow at a rate of 15% annually until 2030.
Kraken emphasized in its announcement that Europe is “one of the most active regions for crypto derivatives trading,” highlighting the strategic importance of this expansion.
Navigating Europe’s Regulatory Landscape
Kraken’s MiFID license acquisition comes as the EU tightens its regulatory framework with the Markets in Crypto-Assets (MiCA) regulation. MiCA focuses on issues such as anti-money laundering, token issuance, and stablecoin regulation. Major players like Crypto.com and OKX have already secured MiCA-specific licenses, signaling growing compliance efforts in the region.
With the MiFID license, Kraken joins a competitive EU market for crypto derivatives, going head-to-head with established exchanges like Bitstamp, Backpack, D2X, and Coinbase, all of which are either offering or planning to offer similar products.
What Are Crypto Derivatives?
Crypto derivatives are financial instruments aimed at experienced traders, including products like futures and options. These contracts derive their value from the price of underlying crypto assets. Due to the inherent volatility of cryptocurrencies, derivatives trading is often considered high-risk, but it remains a popular tool for traders looking to hedge positions or speculate on market movements.
Beyond its European expansion, Kraken has also made headlines in the U.S. by reintroducing its staking program after a two-year hiatus following a legal dispute with the Securities and Exchange Commission. This move comes on the heels of a successful year for the exchange, which more than doubled its revenue in 2024 to $1.5 billion.
