Kraken Irish Subsidiary Awarded VASP Authorization by Central Bank of Ireland
Kraken, one of the world's leading cryptocurrency exchanges, has received some exciting news from its Irish subsidiary, Payward Europe Solutions. On April 18th, the Central Bank of Ireland awarded the company virtual asset service provider (VASP) authorization, making it only the third cryptocurrency outlet to be registered in the European Union (EU).
This authorization comes at a critical time for Kraken and other companies operating in the EU's cryptocurrency market. The EU is set to conduct its final vote on the Markets in Crypto Assets (MiCA) regulation, which has been highly anticipated in the industry. The preliminary voting for the MiCA legislation showed overwhelming bipartisan support, indicating that it is likely to pass.
If the MiCA regulation is approved, it will require any company operating as a crypto assets service provider (CASP) in the EU to register with one of the union's 27 authorized regulators. This means that any company that provides services like custody, exchange, or issuance of cryptocurrencies will have to be authorized by the EU regulators.
Kraken has positioned itself well by obtaining the VASP authorization for its Irish subsidiary Payward Europe Solutions. The company joins the ranks of other registered cryptocurrency outlets like Gemini and Coinbase. Gemini received its VASP authorization in July 2022, while Coinbase received its authorization in December of the same year.
Kraken has been one of the most successful cryptocurrency exchanges in the world since its inception in 2011. The company has a strong track record of providing reliable and secure trading services to its users. In recent years, Kraken has expanded its services to different parts of the world, with subsidiaries operating in different countries.
Payward Europe Solutions, which is registered in Dublin, Ireland, is one of Kraken's most important subsidiaries. The company offers trading services for different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. With the VASP authorization, the company is now authorized to provide these services in compliance with the EU's regulatory requirements.
The MiCA regulation is expected to bring significant changes to the cryptocurrency market in the EU. It will improve investor protection by setting high standards for cryptocurrency service providers. The regulation will also create a level playing field for all players in the industry, as it will apply to all companies that provide crypto services.
Overall, Kraken's VASP authorization for its Irish subsidiary Payward Europe Solutions is a significant milestone for the company. The authorization shows that Kraken is committed to complying with the EU's regulatory requirements and providing top-notch services to its users. It also positions the company well in the highly competitive EU cryptocurrency market.