Kraken has secured a regulatory license under the European Union’s Markets in Crypto Assets (MiCA) framework, the company announced Wednesday. The authorization, granted by the Central Bank of Ireland, enables Kraken to offer crypto services across 27 EU member states, as well as three EEA member states.

“Securing a license from the Central Bank of Ireland… [is] a powerful signal of Kraken’s commitment to expanding the crypto ecosystem through responsible innovation,” Arjun Sethi, co-CEO of Kraken, said in a statement.

“Being the first major global crypto platform to receive authorization from the CBI affirms Kraken’s commitment to building for the long term,” he added. “This license reflects that effort and places us in a strong position to expand our product offering, grow our institutional and retail client base, and deliver secure, accessible, and fully regulated crypto services to millions more people across the EU.”

The euro currently accounts for 17.5% of global fiat spot crypto trading volume, more than double compared to a year earlier, according to the exchange.

An eye on Europe

The approval comes just a week after rival exchange Coinbase announced it had received a similar license in Luxembourg. Both moves highlight how major crypto platforms are racing to align with MiCA ahead of its phased implementation.

MiCA, which has been fully enforced since the end of last year, introduced a unified regulatory regime for crypto asset service providers across the EU.

However, in recent weeks, the ability of firms licensed in one member state being able to offer their services across the entire bloc without needing separate approvals elsewhere has drawn criticism.

Some industry participants and regulators warn it may encourage firms to seek approval in jurisdictions with lighter-touch regulatory regimes, then expand operations more broadly, an issue that has also been seen in other industries.

Peter Curk, CEO of UK-based ICONOMI, previously warned that this could lead to a “race to the bottom” in regulatory enforcement standards. 

The European Securities and Markets Authority is currently reviewing Malta’s licensing practices and is expected to release a report on its findings.

Kraken already holds Virtual Asset Service Provider registrations in Ireland, Belgium, France, Italy, the Netherlands, Poland, and Spain.

Edited by Sebastian Sinclair