Key Insights:
- Kraken secures a virtual asset service provider (VASP) registration from the Dutch Central Bank (DNB), enabling operations in the Netherlands.
- The move aligns with Kraken’s broader European expansion strategy, following licenses obtained in Spain, Italy, and Ireland.
- The Netherlands presents a promising market with approximately 20% of citizens owning cryptocurrency.
- Despite legal challenges in the U.S., including a lawsuit from the Securities and Exchange Commission (SEC), Kraken maintains its business operations.
Detailed Summary:
Cryptocurrency exchange Kraken continues its strategic expansion efforts in Europe with the recent acquisition of a virtual asset service provider (VASP) registration from the Dutch Central Bank (DNB), enabling the platform to operate in the Netherlands. This milestone aligns with Kraken’s broader European growth strategy, which includes obtaining licenses in Spain, Italy, and Ireland.
Kraken’s Managing Director of Europe, Brian Gahan, expressed optimism about the opportunities presented by the Dutch market, stating, “With the addition of the Dutch VASP registration, our European growth strategy continues to accelerate. We see a lot of opportunity to introduce our offering to both retail clients and professional traders in the Netherlands and across Europe.”
The Netherlands emerges as a promising market for Kraken, boasting a vibrant startup and technology sector, a strong financial services industry, and one of the highest fintech adoption rates among developed economies. Additionally, approximately 20% of Dutch citizens own cryptocurrency, highlighting the country’s significant crypto adoption rates.
Kraken’s expansion in Europe comes amidst legal challenges in the United States. In November 2023, the exchange was sued by the Securities and Exchange Commission (SEC) for allegedly operating as an unregistered online trading platform. However, Kraken has maintained that the lawsuit has not impacted its business operations.
Kraken’s regulatory progress in Europe contrasts with its challenges in the United States. The company, based in San Francisco, was sued by the Securities and Exchange Commission in November 2023 for allegedly commingling customer funds and failing to register as a securities exchange, broker, dealer, and clearing agency — Binance and Coinbase had been sued by the regulator on similar grounds a few months earlier.
In February 2023, the exchange reached a $30-million settlement with the SEC, which included the suspension of its staking products and services for U.S. customers.
References: