Kraken, a major US-based cryptocurrency exchange is planning to target and expand into the European market, following the footsteps of its rival exchange Coinbase.

Kraken potentially aims to target countries like Malta, Luxembourg, and Ireland. Kraken's CEO Jesse Powell exclaims that the firm is working to receiving a European license. The firm is actively involved in targeting several local jurisdictions for potential regulatory approval this year. Kraken has been talking with multiple European regulators regarding the same.

The CEO reports that Kraken has not arrived at any final decision yet. The firm is hoping to acquire potential licenses by the end of 2021. Kraken has previously provided some services for European users, including the launch of the Kraken mobile app in January 2021 in Europe. The firm had released a mobile crypto trading application in an attempt to boost industry adoption.

A spokesperson of Kraken has said, "We currently offer access to our European clients via our UK FCA registered entity and comply with the applicable 5AMLD requirements. We are actively exploring multiple options to remain compliant both now and in the future, including by actively working to obtain various European licenses." 

In June, Kraken's rival Coinbase's European arm had received a crypto license from Germany's Federal Financial Supervisory Authority (BaFin). Through this license, Coinbase could legally offer an exchange of virtual currencies.  Coinbase holds a range of crypto services in Europe as well.

Kraken currently operates in almost 190 jurisdictions around the world. Kraken, launched in September 2013, is the world's fifth-largest cryptocurrency exchange. The firm's biggest rival, Coinbase, had gone public with a direct listing on the Nasdaq exchange in April 2021. Kraken is considering public offering more seriously after Coinbase's Nasdaq debut.

Rushali Das

CBW - External Analyst

INDIA