Kraken and Coinbase obtain key licenses to operate in the EU and United Kingdom (UK)

Recently, Kraken and Coinbase have obtained important licenses to expand their operations respectively in the European Union (EU) and the United Kingdom (UK). 

These developments mark a step forward for the consolidation of cryptocurrencies in traditional markets and strengthen user confidence in regulated platforms.

Kraken and the MiFID license for crypto derivatives in the EU and Coinbase with the VASP registration from the FCA in the UK

Kraken has obtained the MiFID license (Markets in Financial Instruments Directive), which allows it to offer crypto derivatives in the markets of the European Union.

This type of license represents a fundamental requirement for companies that wish to operate in regulated financial markets, ensuring transparency and compliance with European regulations.

With this approval, Kraken is strategically positioned to meet the growing demand for cryptocurrency-related derivative instruments, such as futures and options, which are gaining increasing popularity among traders and institutional investors.

Crypto derivatives allow users to speculate on the price of digital assets without having to directly own them, offering opportunities for hedging and risk management.

The obtaining of the MiFID license not only strengthens Kraken’s presence in the European Union, but also represents a positive signal for the entire bull sector. 

It shows that the authorities are willing to collaborate with crypto market operators, as long as they comply with strict regulatory standards.

In parallel, Coinbase has received registration as a Virtual Asset Service Provider (VASP) from the Financial Conduct Authority (FCA) of the United Kingdom. 

This recognition allows Coinbase to offer services related to cryptocurrencies and fiat currencies in the UK market, one of the most significant globally.

The registrazione VASP is a requirement introduced in the United Kingdom to ensure that crypto platforms comply with high standards in terms of anti-money laundering (AML) and combating the financing of terrorism (CFT). 

Coinbase, already one of the largest and most reliable exchanges in the world, thus consolidates its position in the United Kingdom, strengthening the trust of British users.

This development comes at a time when the United Kingdom is seeking to define a clear regulatory framework for digital assets, with the aim of becoming a global hub for financial innovation. 

Coinbase’s compliance with FCA regulations represents an important step towards this goal, providing users with greater security and transparency.

The importance of regulation for the crypto sector

The obtaining of licenses by Kraken and Coinbase underscores the importance of regulation for the cryptocurrency sector.

The regulations not only protect investors, but also promote the legitimization of digital assets in the traditional financial context.

In the past, the lack of regulation has fueled concerns regarding fraud, market manipulation, and illicit activities in the crypto sector.

However, the MiFID and VASP licenses demonstrate that exchanges are increasingly committed to adhering to high standards, contributing to improving the public perception of cryptocurrencies.

Furthermore, regulation offers competitive advantages to compliant operators, allowing them to access larger markets and attract institutional investors, who are often bound by strict regulatory requirements.

For users, these developments represent an opportunity to access crypto services in more secure and regulated environments.

The MiFID license of Kraken allows European investors to explore crypto derivatives with greater confidence, while the VASP registration of Coinbase ensures British users secure access to exchange and custody services.

From the market perspective, the regulated expansion of Kraken and Coinbase could stimulate competition among exchanges, encouraging innovation and improving the offering of products and services. 

Furthermore, compliance with regulations could attract new users. In particular, those who in the past were reluctant to enter the sector due to concerns related to security and transparency.