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Payward Europe Solutions, an Irish branch of Kraken based in Dublin, received virtual asset service provider (VASP) authorization from the Central Bank of Ireland on April 18.
We’re excited to share that Kraken has officially registered with the Central Bank of Ireland (CBI) as a Virtual Asset Service Provider (VASP), reinforcing our dedication to promoting crypto adoption in Europe
Learn more https://t.co/mowesdqEGj pic.twitter.com/C2ScvDhpa1— Kraken Exchange (@krakenfx) April 18, 2023
The VASP authorization arrives at a pivotal moment for Kraken. The European Union is set to hold its final vote on the anticipated Markets in Crypto Assets (MiCA) regulation.
The MiCA legislation is likely to be approved following initial voting that indicated significant bipartisan support. Should it pass, the resulting regulations will mandate that any entity functioning as a CASP — a crypto assets service provider — within the EU must register with one of the union’s 27 authorized regulators.
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Kraken, specifically its Irish subsidiary Payward Europe Solutions, has attained this qualification, becoming only the third cryptocurrency platform to achieve such status. Exchanges Gemini and Coinbase obtained their VASP authorization in July and December of 2022, respectively.
Related: Crypto in Europe: Economist breaks down MiCA and future of stablecoins
In a blog post, Kraken’s head of European operations Mark Jennings praised the Bank of Ireland’s decision, noting that “Clear and effective regulation is essential for the mainstream adoption of cryptocurrencies.” Jennings also suggested that the designation serves as evidence of the company’s credibility:
"Kraken’s Irish VASP registration illustrates to both our clients and regulators that Kraken adheres to Europe’s most stringent anti-money laundering and compliance standards. Registration further emphasizes Kraken’s commitment to advancing crypto adoption throughout Europe, now and in the future.”
Meanwhile, in the U.S., the path has been more challenging for the Kraken cryptocurrency exchange, as it was compelled to reach a settlement with the Securities and Exchange Commission regarding alleged issues with its staking services. Consequently, Kraken paid $30 million in penalties and agreed to discontinue offering staking services to U.S. clients.
Fast forward to April 18, and it seems that Kraken is well-prepared to fulfill MiCA compliance requirements ahead of the EU vote on April 19 — if the measures are approved, full implementation is anticipated by Q3 2024 following an 18-month transition period.
