Kraken, the popular cryptocurrency exchange, has recently been granted a Virtual Asset Service Provider (VASP) license by the Central Bank of Ireland, the country’s financial regulatory authority.
According to the exchange’s official blog, Kraken has registered its subsidiary, Payward Europe Solutions, with the Central Bank of Ireland as a virtual asset service provider.
This license ensures that Kraken’s controls are in line with the requirements of the European Digital Asset Market, said Mark Jennings, Head of Kraken Europe.
The VASP license enables Kraken to operate legally in Ireland, including holding, clearing, executing trades, pricing, and managing a portfolio of assets.
Additionally, obtaining licensing from the European regulator will give Kraken access to the national financial and technical personnel reserves of the European Union through strategic alliances with fintech companies and the EU banking infrastructure.
This move comes as Kraken announced its plans to launch its own banking institution.
The announcement was made in light of the exchange’s decision to refuse services from Signature Bank, which was under investigation by US law enforcement agencies.
With its VASP license and plans for a banking institution, Kraken is poised to continue leading the way in the cryptocurrency industry while complying with regulatory requirements.