Popular cryptocurrency exchange, Kraken has secured a UK E-money license from the UK Finacial Conduct Authority (FCA), enabling it to act as an Electronic Money Institution to expand fiat and crypto on/off ramp to the nation.
Following years of regulatory backlashes for crypto firms in the UK, now Kraken, the leading crypto exchange has been authorized as an Electronic Money Institution (EMI) by the UK Financial Conduct Authority, the country’s financial regulator. This E-money license will allow Kraken to partner with traditional financial institutions and expand its services to UK users. Not only Kraken, there are 30 other crypto companies listed on the FCA’s cryptoasset register.
According to Kraken’s official statement, the license will allow the issuance of electronic money and facilitate the deposit and withdrawal process of UK users. The authorization also enables Kraken to launch new crypto-oriented financial products, targeting the growing UK crypto market.
The UK has witnessed a broader market shift, mainstream investors are seen as highly attracted to crypto. With the license, the exchange could strengthen its integration with the UK financial system, allowing it to monetize from the changed investor sentiments.
Bivu Das, the general manager of Kraken in the UK, revealed that the approval marks a foundational advancement, developing opportunities to meet with the mass crypto adoption in the country, and added that Kraken will lead the way by introducing industry-leading products.
Kraken’s FCA License Follows The Rising Crypto Adoption In The UK
Kraken receives the FCA approval at a time when crypto is gaining the highest traction in the country, marking a major milestone for the exchange’s UK services. According to data from November 2024, at least 12%, which means around 7.6 million UK citizens own crypto.
The approval marks the conclusion of a long time wait. Kraken has spent years adjusting to the ever-evolving conditions of FCA. Kraken has operated in the UK since 2019 after gaining control over Crypto Facilities Ltd, a Multilateral Trading Facility (MTF) firm approved by FCA.
With the MTF acquisition, Kraken began introducing crypto trading services in the UK, including futures and extended its offerings to UK-specific spot trading and custody services later.
Kraken also received a license under the EU’s MiFID Framework, which will allow the exchange to offer regulated derivative trading to Europen users. By acquiring compliance with both United States and European regulators, Kraken is positioning itself as a foundational bridge between crypto and traditional finance.
Following Years Of Regulatory Adjustments, Kraken To Offer Fiat And Crypto Ramps To The UK Users
Kraken’s long journey to acquire regulatory approval finally finds light, the FCA license will allow the exchange to offer fiat and crypto ramps to its UK users.
Kraken has been offering its services to UK users for a long, however in 2020, the FCA tagged Kraken as an unauthorized firm that offered financial services in the UK without proper licenses. The exchange opposed the allegation highlighting its Crypto Facilities Ltd registration with the FCA and then it was necessitated to clarify its regulatory position in the country.
In the next year, Payward Ltd, Kraken’s UK entity registered with FCA as a crypto asset business, allowing the exchange to offer its services legally in the UK. However, with some regulatory changes, the FCA banned crypto derivatives and exchange-traded notes to the country’s retail investors, preventing Kraken from offering these services.
In 2023, FCA tightened its regulations around the crypto industry, with which Kraken removed incentive features from its platform.
However, now the exchange has got its FCA approval, allowing it to take full-fledged service in the UK. FCA’s changed strategies highlight the country’s redefined approach towards crypto.
