Kraken has secured authorization as an Electronic Money Institution (EMI) from the UK Financial Conduct Authority (FCA), marking a critical regulatory milestone in its expansion strategy in the United Kingdom.
Trading under Payward Ltd, Kraken is also one of 31 crypto companies listed on the FCA’s “cryptoasset register.”
Per Kraken’s official announcement, the authorization enables the issuance of electronic money, streamlining deposit and withdrawal processes for UK-based users. This approval positions Kraken to introduce additional crypto-oriented financial products targeting a growing domestic market.
The license underlines Kraken’s strategy to strengthen integration within the UK financial ecosystem. According to Kraken’s UK General Manager, Bivu Das, the EMI approval represents a foundational advancement, creating avenues to meet increasing local demand for crypto-driven financial solutions.
The decision comes amid broader market shifts in the UK, with crypto adoption gaining traction among mainstream investors. Kraken cited FCA data that indicates approximately seven million UK adults, roughly 12% of the adult population, currently engage with digital assets. Such engagement marks a notable increase in crypto integration within standard investment portfolios.
Kraken, active in the UK since becoming the first major exchange to launch a BTC/GBP pair in 2014, reportedly maintains a significant share of GBP-denominated crypto trading volume. The exchange currently offers around 300 digital assets for UK traders, reinforcing its prominence in local GBP-denominated crypto trading.
The EMI license arrives following recent strategic regulatory accomplishments, including the acquisition of a Markets in Financial Instruments Directive (MiFID) license through Cyprus, broadening Kraken’s regulatory footprint in Europe. Additionally, Kraken’s relaunch of on-chain staking in 37 US states further illustrates its proactive stance toward regulatory compliance.
Kraken is preparing for an initial public offering (IPO) in the US in 2026, signaling confidence amid evolving regulatory landscapes under the Trump administration, which the company perceives as favorable. Resolving earlier SEC actions without penalties has bolstered Kraken’s regulatory reputation, supporting its ambitious global market positioning.
Kraken’s EMI authorization aligns with broader industry trends where regulatory clarity significantly shapes crypto exchange strategies, including similar initiatives pursued by Circle, BitGo, and Gemini. Furthermore, Kraken’s forthcoming role in FTX’s creditor repayments in May 2025 highlights its expanding institutional influence in crypto.
The UK remains a critical jurisdiction for Kraken, driven by significant GBP-denominated trading activity. According to FCA research, increased crypto adoption in the region may fuel demand for the exchange’s planned products, enhancing Kraken’s competitive advantage domestically and internationally.
In the near term, Kraken plans to launch several new crypto and fiat offerings in the UK designed to facilitate liquidity management and asset utility for users. These initiatives aim to address evolving user expectations for accessible and practical crypto-based financial tools.
Kraken’s UK General Manager, Bivu Das, emphasized the strategic importance of the EMI license, describing it as foundational for future developments designed specifically to serve UK investors seeking utility-driven crypto solutions. This focus aligns with broader market trends favoring increased crypto integration in traditional financial ecosystems.
In securing this EMI license, Kraken meets the stringent regulatory standards mandated by the FCA, reflecting a balanced approach to innovation and compliance.
Mentioned in this article
Credit: Source link