Kraken Bags EMI Authorization From the UK FCA

Kraken, a prominent cryptocurrency exchange, has received authorization from the UK Financial Conduct Authority (FCA) to operate as an Electronic Money Institution (EMI). This important achievement helps Kraken improve its services in the UK and strengthens its role in the fast-changing cryptocurrency market.

Kraken to Offer More Financial Products

According to the announcement, Kraken is now officially allowed to issue electronic money (e-money) in the UK. This approval will also help the company make it easier and faster for UK users to deposit and withdraw their funds. By issuing e-money, Kraken can manage users’ money directly, which reduces the need for third-party financial institutions and speeds up transaction times.

Notably, the FCA’s endorsement allows Kraken to offer more financial products for the UK market. As more people adopt cryptocurrency worldwide, Kraken is now in a better position to launch new crypto-related financial services that meet the needs of its growing UK customer base. These services may include options like crypto-backed lending, payment processing, and 

It is worth noting that regulatory approval is important for protecting consumers. With the FCA monitoring Kraken’s activities, UK customers can feel safer about their funds and the rules the company follows. This will likely help build trust in Kraken’s services, especially for new users or those who are careful about using digital assets.

Kraken Exchange Bows to MiCA

Recall that Kraken announced plans to fully delist five stablecoins, including Tether’s USDT, across the European Economic Area (EEA). 

The exchange is trying to comply with the Markets in Crypto-Assets Regulation (MiCA) to retain its relevance in the EU region. Additionally, this decision comes as part of a broader regulatory change enforced by the European Securities and Markets Authority (ESMA).

As reported, Kraken will remove support for Tether USDt (USDT), PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST) in Europe. However, the delisting will take place in multiple stages. The exchange also assured users that the delisting strategy is strictly for its EEA clients, spanning 30 countries, including Spain, Sweden, Austria, Portugal, and Malta.

Exchanges Expands Crypto Services in the UK

Like Kraken, Austrian cryptocurrency platform Bitpanda expanded its footprint in the United Kingdom in February. 

This expansion came after Bitpanda received regulatory approval from the FCA. With this green light, Bitpanda is set to offer UK investors access to over 500 crypto assets, marking one of the broadest selections available in the country.

Furthermore, this approval is a significant milestone for Bitpanda, which had previously paused new user onboarding in the UK. The pause was due to FCA’s tightened Financial Promotions (FinProm) regime in late 2023. 

Similarly, Coinbase cryptocurrency exchange secured a spot on the FCA register, permitting Coinbase to offer crypto services in the U.K. from now on, Coinbase can offer crypto and cash services to U.K. investors and traders. 

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