Kraken bolsters UK crypto regulatory position by securing FCA electronic money license

Kraken has recently obtained authorization as an Electronic Money Institution (EMI) from the UK Financial Conduct Authority (FCA), a significant regulatory milestone in its expansion strategy in the United Kingdom.

Operating under Payward Ltd, Kraken is also included in the FCA’s “cryptoasset register” alongside 31 other crypto companies.

According to Kraken’s official announcement, this authorization allows for the issuance of electronic money, simplifying deposit and withdrawal processes for UK users. With this approval, Kraken is poised to introduce new crypto-focused financial products to meet the demands of the growing domestic market.

This development underscores Kraken’s commitment to deeper integration within the UK financial landscape. Bivu Das, Kraken’s UK General Manager, views the EMI approval as a crucial advancement that will enable the company to cater to the rising local demand for crypto-related financial solutions.

The decision comes at a time when crypto adoption is on the rise in the UK, with approximately seven million adults – around 12% of the adult population – actively engaging with digital assets, as highlighted by FCA data. This trend demonstrates a significant increase in crypto inclusion in traditional investment portfolios.

Having been active in the UK since introducing the first BTC/GBP pairing in 2014, Kraken reportedly holds a substantial portion of GBP-denominated crypto trading volume. The exchange currently offers around 300 digital assets for UK traders, solidifying its position in the local GBP-denominated crypto trading market.

In addition to the EMI license, Kraken has recently acquired a Markets in Financial Instruments Directive (MiFID) license in Cyprus, expanding its regulatory reach in Europe. The exchange has also relaunched on-chain staking in 37 US states, showcasing its proactive approach to regulatory compliance.

Kraken’s plans for an IPO in the US in 2026 demonstrate the company’s confidence in the evolving regulatory landscape under the current administration. Resolving SEC actions without penalties has further enhanced Kraken’s regulatory standing, supporting its ambitious global expansion plans.

Kraken’s EMI authorization is in line with industry trends where regulatory clarity plays a crucial role in shaping crypto exchange strategies. Similar initiatives have been pursued by Circle, BitGo, and Gemini. Furthermore, Kraken’s involvement in FTX’s creditor repayments in May 2025 showcases its growing institutional influence in the crypto space.

The UK remains a key market for Kraken, given the significant GBP-denominated trading activity in the region. As crypto adoption continues to rise in the UK, there is potential for increased demand for Kraken’s planned products, strengthening its competitive position both domestically and internationally.

In the near future, Kraken intends to introduce new crypto and fiat offerings in the UK to facilitate liquidity management and enhance asset utility for users, aligning with evolving user expectations for practical crypto-based financial tools.

Bivu Das, Kraken’s UK General Manager, highlights the strategic significance of the EMI license, emphasizing its importance for future developments aimed at serving UK investors seeking utility-focused crypto solutions. This focus aligns with the broader trend of increased crypto integration in traditional financial systems.

Securing the EMI license demonstrates Kraken’s commitment to meeting the stringent regulatory standards set by the FCA while also fostering innovation in the crypto space.

Mentioned in this article

Source link

#Kraken #strengthens #crypto #regulatory #standing #FCA #electronic #money #license