Described as a “foundational step”, cryptocurrency company Kraken has obtained an Electronic Money Institution (EMI) licence from the UK’s Financial Conduct Authority (FCA).
This new licence will allow Kraken to issue electronic money, meaning that it can provide its clients in the UK with faster deposits and withdrawals. Additionally, the licence opens the firm up to various partnership opportunities with traditional financial institutions.
Bivu Das, UK GM at Kraken, commented: “The UK is on the brink of mass crypto adoption, and Kraken is poised to lead the way with industry-leading products.
“We have major plans for UK users that will unlock a wave of demand for crypto-powered financial solutions that showcase real utility for UK investors and consumers. Securing an EMI licence is a foundational step in our expansion strategy, and we’re thrilled to announce this authorisation today.”
Highlighting research by the FCA, Kraken states that over seven million UK adults now own crypto, with awareness and average portfolio values both increasing year-over-year. Given these statistics, it is understandable why the firm would like to expand its presence in the region.
As noted by Das, Kraken aims to become a leader in the UK crypto space. One way that it has aimed to achieve this is by sponsoring sports teams. The crypto exchange is currently a partner of Williams Racing Formula One Team and the Premier League’s Tottenham Hotspur.
Its strategy seems to be working so far, as Kraken names the UK as one of its most active markets globally by trading volume. Offerings also play an important role in this strategy, with the firm offering multiple fiat onramps and GBP trading pairs.
However, this UK development is part of a wider European push. In 2023, Ireland granted Kraken an EMI licence and most recently, it obtained an EU MiFID licence which allows Kraken to serve advanced European crypto traders with an expanded regulated derivatives offering.
Looking ahead, the firm is preparing to put the newly-acquired licence into action through a range of new products.
Kraken stated: “In the coming months, we’ll be unveiling several exciting new crypto and fiat products designed to empower UK users to build wealth through crypto and unlock accessible ways for them to use all the assets in their Kraken account as a source of liquidity.”
