The Central Bank of Ireland granted authorization to Kraken, a cryptocurrency exchange with headquarters in the United States, to act as a virtual asset service provider.
On April 18, the Central Bank of Ireland granted virtual asset service provider (VASP) authorization to Payward Europe Solutions, an Irish subsidiary of Kraken with its headquarters in Dublin.
📣 We’re pleased to announce that Kraken has successfully registered with the Central Bank of Ireland (CBI) as a Virtual Asset Service Provider (VASP), affirming our commitment to helping drive crypto adoption in Europe 🇮🇪 🤝
— Kraken Exchange (@krakenfx) April 18, 2023
The VASP authorization arrives at an essential point for Kraken. The final vote on the Markets in Crypto Assets (MiCA) rule that has been anticipated for so long is going to be held by the European Union.
Following preliminary votes that indicated overwhelmingly bipartisan support, the MiCA law is anticipated to pass. If so, the resulting changes will make it necessary for any company operating as a CASP—a provider of crypto assets—in the EU to register with one of the union’s 27 authorized regulators.
Kraken, or rather its Irish subsidiary Payward Europe Solutions, has gained a such qualification, making it only the third cryptocurrency outlet to be registered with this particular authority. In July and December of 2022, respectively, the cryptocurrency exchanges Gemini and Coinbase were granted their VASP authorization.
Mark Jennings, the head of Kraken’s European operations, praised the Bank of Ireland’s choice in a blog post for the company, asserting that “clear and effective regulation is essential for the mainstream adoption of cryptocurrencies.”Jennings also hinted that the accreditation was evidence of the company’s legitimacy:
“Kraken’s Irish VASP registration demonstrates to regulators and clients alike that Kraken complies with the highest anti-money laundering and compliance standards in Europe. The registration demonstrates Kraken’s continuing commitment to promoting cryptocurrency adoption in Europe.”
The cryptocurrency exchange Kraken has faced more difficulties since returning to the United States since it was obliged to reach a settlement with the Securities and Exchange Commission for alleged irregularities with its staking services. As a result of the lawsuits, Kraken agreed to discontinue providing staking services to clients in the United States and paid fines totalling $30 million. Read more: Kraken To Suspend US Crypto-Staking Service, Pay $30M Fine in SEC Settlement
Moving forward to April 18, it appears like Kraken will be ready to comply with MiCA regulations on time for the EU vote on April 19 provided everything is in line. If the measures are approved, there would be an 18-month transition period before full implementation, which would occur by Q3 of 2024.