Kraken was one of the first crypto exchanges in the UK to offer GBP BTC trading in 2014 and has now receive Electronic Money Institution (EMI) authorization from the U.K.’s Financial Conduct Authority (FCA).
Whilst this doesn’t mean you get the same protections as if you were buying shares on a stock exchange, it does mean that they are now one of a handful of Bitcoin brokers that the regulator has deemed responsbile enough for UK crypto investors.
Kraken currently offers 300 cryptocoins in the UK and hopes to make it easier that ever for the 7 million crypto traders in the UK to invest in digital assets.
Earlier this year, Kraken has received a Mifid regulatory licence to buy and sell crypto derivatives within the European Union (EU).
The cryptocurrency exchange gained the license through buying a Cypriot investment firm. The firm had recently received the license from the Cyprus Securities and Exchange Commission (CySEC).
The move will allow Kraken to offer crypto derivatives products to traders resident in the 27 EU countries, aiding its plans to expand across the continent.
The buyout comes after Kraken previously acquired Crypto Facilities, a UK FCA-regulated crypto futures platform, in 2019.
Kraken is one of a select group of businesses authorised by the FCA to offer cryptoasset services in the UK.
The acquisition of the new licence follows the firm’s launch of Kraken Pay last month. This service allows users to send payments internationally using more than 300 cryptocurrencies and fiat currencies.
These moves come as the election of Donald Trump as US president has buoyed crypto markets on the belief that his administration will provide a more supportive regulatory environment for the sector.
In December rival exchange Coinbase enabled Apple Pay, allowing for immediate conversions between fiat currencies such as dollars and pounds and crypto currencies.
The new feature is accessible through Coinbase Onramp, which facilitates fiat payments for eligible users of the Coinbase app.
That came shortly after the price of Bitcoin passed $100,000 for the first time on 5 December. As of 5 February, it has since dipped back down below this figure to around $98,000.
Recently released Financial Conduct Authority data shows the percentage of people in the UK who own some crypto rose to 12% in 2023 from 10% in 2022. The average value held rose from £1,595 to £1,842 over the same period.
In October, the financial watchdog reiterated its rules against selling cryptocurrency derivatives such as exchange traded funds (ETFs) to retail investors in the UK.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
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