Cryptocurrency

Kraken gets regulatory approval to operate in Ireland

Kraken received a Virtual Asset Service Provider (VASP) license from the Central Bank of Ireland on April 18th.

This license allows cryptocurrency exchanges to operate legally in the country.

Kraken said the approval demonstrates its compliance with strict anti-money laundering and terrorist financing rules, adding that the license is evidence of its strict compliance.

Mark Jennings, Head of European Operations for Kraken, said:

“Clear and effective regulation is essential for mainstream adoption of cryptocurrencies. As we bring innovative products and services to market, we operate compliantly under sensible and forward-looking crypto regulation.” We are committed to continuing to work with European regulators to do so.”

Regulatory uncertainty

The crypto industry has been desperately in need of regulatory clarity for years. However, the world’s leading economies, the United States and China, have taken a very cold stance on the sector.

While the U.S. regulatory environment is not as closed as China, which banned digital assets in 2021, the country’s oversight bodies, especially the SEC, have addressed regulatory topics primarily through enforcement.

In recent months, the SEC has taken multiple enforcement actions against some of the country’s most established exchanges, including Kraken and Coinbase.

This has exacerbated the exodus and cross-border expansion of cryptocurrency companies seeking a firmer footing.

Europe and Hong Kong

Europe and Hong Kong have become prime locations for cryptocurrency companies due to their proactive approach to regulation.

Europe is implementing the Crypto Asset Market (MiCA) framework that establishes rules for cryptocurrencies and the industry as a whole. It also imposes various regulatory requirements and mandatory disclosures on cryptocurrency companies, putting them on par with traditional financial institutions.

In addition, the European Parliament has also introduced a data law. It complements the MiCA regulation and establishes protocols for handling sensitive personal and business data.

Although the MiCA framework and data law have not yet come into force, companies have already started applying for the necessary approvals and will make more announcements in the coming months.

Similarly, Hong Kong is also trying to establish a full regulatory network for the cryptocurrency industry and is already processing applications from VASP applicants.

Hong Kong authorities said recently that more than 80 companies have expressed interest in setting up stores in Hong Kong, and about 20 have already applied for licenses.

The post Kraken received regulatory approval to operate in Ireland first appeared on CryptoSlate.

Related Articles

Back to top button