Payward Europe Solutions, the Dublin-registered Irish subsidiary of Kraken, received Virtual Asset Service Provider (VASP) authorization from the Central Bank of Ireland on April 18.
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
Learn more https://t.co/mowesdqEGj pic.twitter.com/C2ScvDhpa1
— Kraken Exchange (@krakenfx) April 18, 2023
The VASP authorization comes at a critical time for Kraken. The European Union is scheduled to hold its final vote on the long-awaited regulation. Markets in Crypto Assets (MiCA).
The MiCA legislation is expected to pass after preliminary voting showed overwhelming nonpartisan support. If approved, the resulting changes will force any company operating as a CASP -crypto asset service provider- in the EU to register with one of the union’s 27 authorized regulators.
Kraken, or rather its Irish subsidiary Payward Europe Solutions, has received such qualification, becoming the third cryptocurrency exchange to do so. The Gemini and Coinbase exchanges received their VASP authorization in July and December 2022, respectively.
In a company blog post, Kraken’s head of European operations, Mark Jennings, praised the Bank of Ireland’s decision, stating that “clear and effective regulation is essential for mass adoption of cryptocurrencies.” Jennings also hinted that the designation was a testament to the company’s legitimacy:
“Kraken’s Irish VASP registration demonstrates to both our clients and regulators that Kraken follows the strongest anti-money laundering and compliance standards in Europe. The registration further underscores Kraken’s commitment to driving cryptocurrency adoption across Europe. now and in the future.”
In the United States, the road has been more bumpy for cryptocurrency exchange Kraken, that it has been forced to reach an agreement with the Securities and Exchange Commission for alleged irregularities in its staking services. As a result of the lawsuit, Kraken paid $30 million in penalties and agreed to stop offering staking services for US clients.
As of April 18, it seems that Kraken should have everything ready to meet the requirements of the MiCA regulation before the EU vote on April 19: if the measures are approved, full implementation is scheduled for the third quarter of 2024, after a transition period of 18 months.
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