According to German press, Kraken, an American cryptocurrency exchange Kraken, is looking to expand its operations in Europe. Jesse Powell, founder of Kraken, has revealed that the coin trading platform is in discussions with regulators and plans on acquiring a license within an EU member state.
Kraken will be on the European market by the end the year
According to Handelsblatt, Kraken, a major US digital asset exchange, plans to reestablish itself in the European Union in this year. This development is occurring as the crypto market continues to mature and attracts more investors during a market recovery, according to Handelsblatt. Jesse Powell, the founder and CEO of the company, spoke to the German newspaper about his intentions.
We are currently working on a license for an EU country.
According to the report, the San-Francisco-based crypto company aims to reach Europe’s common market by 2021. This could be via Malta, Luxembourg, or the Republic of Ireland. The exchange is currently in talks with the Old Continent’s monitoring bodies.
According to Coingecko data, Kraken is fifth among the top cryptocurrency exchanges worldwide with a daily trading volume around $1.3 billion. According to its own figures, Kraken has over 6 million users in 190 nations and more than 2000 employees.
Coinbase, the largest cryptocurrency exchange in the United States, and Kraken’s main competitor led the way earlier this year by receiving approval from the Federal Financial Supervisory Authority to store and trade crypto currencies. Bafin. Coinbase is now able to offer services to customers throughout the European Union thanks to the German license.
Germany, UK Unsuitable for European Base
Jesse Powell made it clear, however, that Germany was not the best European base for Kraken. Bafin was also in talks with the exchange but it found the German regulations to be too difficult and restrictive. This means that the company would have to pay too much to comply.
Although Britain is the country with the most competent regulator, it is not possible to do so after Brexit. Although the Financial Conduct Authority (FCA), has been dealing with cryptocurrency since 2013, it was no longer possible to obtain or maintain an EU-wide license within its jurisdiction. Kraken owns Crypto Facilities Ltd. which is a licensed and regulated crypto derivatives trading platform.
The next step for Kraken is to complete an Initial Public Offering (IPO). It was valued at $ 10 million in its last funding round. The company has had an excellent year thus far, with more users in the first half of 2021 than in 2020. It also saw a transaction volume exceeding $ 485 Billion in the first half of the year, three times more than the volume last year.
Kraken also plans on offering crypto-focused online banking in America towards the end this year. The exchange was granted a Wyoming banking license in September 2017. Powell stated that Kraken users can link their bank accounts to cryptocurrency accounts.
What EU country will you be hosting Kraken’s European headquarters, and why? Leave a comment below.