Kraken Establishes EU Derivatives Business in Cyprus with MiFID II Regulation

Kraken, a well-known cryptocurrency platform, has established its European derivatives business in Cyprus. The company's investment arm is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the MiFID II directive.

Stavros Vassiliades, Chief Operating and Executive Director of Payward Europe Digital Solutions (CY) Ltd, believes that Cyprus offers a reliable base for international fintech groups operating in the EU market. He cites regulatory certainty, compliance expertise, anti-money laundering specialists, and risk management as key advantages.

Kraken's MiCA hub, authorized by the Central Bank of Ireland, handles spot trading in cryptoassets within the EU. Vassiliades notes that companies offering both MiCA and MiFID II services require two licenses, but through its dual-regulated divisions, Kraken can provide services to 30 countries within the European Economic Area.

The company works with products regulated by MiFID II in Cyprus, including futures, xStocks tokenized shares, and traditional shares. Vassiliades emphasizes that a license does not guarantee investor protection against market losses but rather ensures company supervision, capital requirements, and segregation of client funds.