Kraken Subsidiary Registered as VASP with Central Bank of Ireland: Expanding Presence in the EU Cryptocurrency Market

According to reports, the US cryptocurrency exchange Kraken has registered a subsidiary of Payward Europe Solutions as a virtual asset service provider (VASP) with the Central Bank of Ireland. Kraken, through its subsidiary, became the third US encryption platform approved to operate in EU countries. The exchange Gemini and Coinbase were authorized as VASP in July 2022 and December 2022, respectively.

Kraken obtained Irish license to become a virtual asset service provider

The cryptocurrency market continues to grow in the European Union (EU), with Kraken’s latest move toward expanding its European presence. Reports indicate that the US cryptocurrency exchange Kraken has registered a subsidiary, Payward Europe Solutions, as a virtual asset service provider (VASP) with the Central Bank of Ireland, becoming the third US cryptocurrency platform to gain approval for virtual asset services in EU member countries. The exchange joins Gemini and Coinbase, which were authorized to operate as VASP in July 2022 and December 2022, respectively.

Overview

As cryptocurrency gains more widespread adoption worldwide, regulatory bodies are trying to ensure the safety of investors’ assets while avoiding money laundering and other illicit activities. VASPs contribute significantly by providing an infrastructure where cryptocurrencies can be bought, sold, stored, and traded. The EU has become an attractive market for cryptocurrency exchanges, and the Central Bank of Ireland has been supportive of VASP registration. Kraken obtaining authorization from the central bank is an indication of its commitment to establishing a more substantial presence in the EU region.

Kraken’s Expansion to Europe

Kraken, based in San Francisco, California, is one of the leading cryptocurrency exchanges globally, having established itself as a reputable trading platform for cryptocurrencies. Founded in 2011, Kraken has grown to become one of the most trusted virtual asset service providers in the US. Its registration in Ireland as a subsidiary of Payward Europe Solutions comes as a strategic move toward expanding its cryptocurrency offerings in Europe.
By obtaining VASP authorization in the EU, Kraken can offer its services and products to European customers within the regulated framework. Its goal is to provide a user-friendly exchange for buying and selling cryptocurrencies while maintaining a high level of professionalism, security, and compliance. The EU market provides an opportunity for Kraken to tap into a new customer base, and the company aims to provide additional benefits to its customers and solidify its position as a globally recognized cryptocurrency exchange.

Kraken and VASP Authorization

VASP authorization is a crucial step for cryptocurrency exchanges looking to serve customers in regulated jurisdictions, as it verifies that they meet the required standards regarding anti-money laundering and counter-terrorism financing. For Kraken, authorization by the Central Bank of Ireland means that its operations and services meet the rigorous standards specified by the bank, ensuring the safety and security of investors’ assets.

Conclusion

Kraken’s registration as a VASP with the Central Bank of Ireland is a significant milestone for the cryptocurrency exchange, marking its expansion into the EU region. As the cryptocurrency market continues to evolve, regulatory compliance becomes increasingly important, and Kraken’s VASP authorization is an acknowledgment of its commitment to comply with regulatory frameworks while expanding its business operations. Kraken aims to continue providing reliable, safe, and secure services to its customers in the EU and beyond.

FAQs

1. What is a virtual asset service provider (VASP)?
A virtual asset service provider is an entity that provides cryptocurrency-related services, such as buying, selling, trading, and storing digital assets.
2. Why is VASP registration important for cryptocurrency exchanges?
VASP registration signifies that a cryptocurrency exchange has conformed to the necessary regulations regarding anti-money laundering and counter-terrorism financing.
3. What is Kraken’s goal in expanding its European presence?
Kraken aims to tap into a new customer base and provide additional benefits to its customers while solidifying its position as a globally recognized cryptocurrency exchange.