Kraken Expands European Reach with Dutch Central Bank Registration

Cryptocurrency exchange Kraken has reached another milestone in its European expansion strategy by securing a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DNB). This latest development underscores Kraken’s commitment to regulatory compliance and its goal of offering comprehensive crypto services to clients across Europe.

With this registration, Kraken gains the authorization to provide exchange, transfer, custody, and wallet services for virtual assets in the Netherlands. This achievement marks Kraken’s fourth license in Europe, following previous registrations in Spain, Italy, and Ireland. The company’s expansion into the Netherlands is strategically significant, given the country’s dynamic startup ecosystem, robust financial services industry, and high adoption rate of cryptocurrency among its citizens.

Kraken’s move into the Dutch market aligns with its broader European growth strategy, which includes plans for market consolidation and expansion. The acquisition of Dutch crypto broker BCM in October 2023, pending regulatory approval, is a testament to Kraken’s commitment to strengthening its presence in the region. The company aims to capitalize on the Netherlands’ favorable regulatory environment and growing crypto adoption to attract both retail investors and professional traders.

While Kraken’s European expansion progresses smoothly, the company faces regulatory challenges in the United States. In November 2023, the Securities and Exchange Commission (SEC) sued Kraken for allegedly operating as an unregistered online trading platform. Despite this legal hurdle, Kraken remains resilient, emphasizing that its business operations have not been significantly impacted by the lawsuit.