Kraken, one of America’s top crypto exchanges, has secured Electronic Money Institution (EMI) authorization from the Financial Conduct Authority (FCA), marking a milestone in its history. The approval enhances Kraken’s ability to provide financial services in the United Kingdom (U.K.), including issuing electronic money and enabling faster client deposits and withdrawals.
U.K. Grants EMI Approval to Kraken
Kraken believes the authorization strengthens its market position by unlocking new opportunities to partner with traditional financial institutions and launch products for U.K. clients. Via an official press release, the company emphasized its commitment to expanding its financial solutions in response to the growing demand in the U.K.
Kraken’s U.K. General Manager, Bivu Das, stated that the country is on the brink of mass crypto adoption and that Kraken is poised to lead the way with industry-leading products. He described securing the EMI license as a “foundational step” in the company’s expansion strategy and expressed enthusiasm for the approval.
Meanwhile, the EMI license follows Kraken’s recent EU MiFID license, which allows it to expand regulated derivatives offerings to advanced European crypto traders. On the other hand, the FCA has been tightening oversight on crypto firms, requiring them to comply with strict Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations.
Kraken believes its regulatory approval may bolster investor confidence and attract more U.K.-based traders and institutions. The company has hinted at the launch of several new crypto and fiat products in the coming months. It claims these are designed to empower U.K. users by enhancing liquidity and wealth-building opportunities.
U.K. Crypto Market Grows as Country Rejects Bitcoin Reserve
Notably, the U.K. is one of Kraken’s most active markets globally regarding trading volume. The exchange was one of the first to provide a BTC/GBP trading pair in 2014 and has led GBP-denominated trading volume.
The regulatory milestone comes as crypto adoption in the country continues to rise. Data from FCA research shows that over seven million U.K. adults hold crypto, with both awareness and investment levels increasing year over year.
Nonetheless, according to the U.K. Treasury’s spokesperson, its stance on Bitcoin is that it has no plans to create a strategic reserve due to the crypto’s volatility. This decision contrasts with some countries, such as the United States, where the introduction of a BTC reserve has been considered.
