Kraken Nets UK E-Money License for Enhanced Crypto and Fiat Ramps

• Kraken has operated in the U.K. since 2019.
• New crypto, stablecoin, and staking regulations will be rolled out in the U.K. in 2025.
• The U.K. has rejected the notion of adopting a U.S.-style Bitcoin Reserve.

Cryptocurrency exchange Kraken has secured a crucial E-Money license from the U.K.’s financial watchdog that will allow it to expand and enhance its offerings in the nation.

This follows years of regulatory back-and-forths for Kraken and cryptocurrency firms in the U.K.

Crypto Ramps

As per Kraken, the exchange has received an Electronic Money Institution (EMI) license from the U.K.’s Financial Conduct Authority (FCA), allowing it to enhance fiat and crypto on/off ramps for users.

According to the exchange, this marks an “important milestone” for its U.K. services, which have spent years adapting to the ever-changing demands of the FCA.

As of Nov. 2024, the FCA estimates that at least 12%, or roughly 7.6 million U.K. adults now own crypto.

This development follows years of regulatory adjustments for U.K. crypto firms. Kraken has operated in the U.K. since 2019 after acquiring Crypto Facilities Ltd., an FCA-approved firm that operated as a Multilateral Trading Facility (MTF).

Initially, this allowed it to roll out crypto trading services such as futures, though these targeted institutional and professional traders. The exchange eventually rolled out U.K.-specific spot trading and custody services.

Kraken’s U.K. Journey

Contention arose in 2020  when the FCA labeled Kraken an “unauthorized firm” and alleged the exchange offered financial services in the U.K. without appropriate licensing.

The exchange refuted this, citing Crypto Facilities’ registration with the regulator. Following this, Kraken needed to clarify its regulatory position in the U.K.

In 2021, Kraken’s U.K. entity, Payward Ltd., became registered as a cryptoasset business with the FCA, allowing it to legally offer services in the U.K

Further regulatory adjustments came that year when the FCA banned crypto derivatives and exchange-traded notes (ETNs) to retail customers. Kraken then removed these offerings, while institutional offerings remained unaffected.

In 2023, Kraken removed incentives such as friend referrals as part of new FCA measures to tighten regulations around crypto marketing.

Now, it appears to be full steam ahead for crypto in the U.K. as it charts out new legislative rules for crypto, stablecoins, and even staking services.