Cryptocurrency exchange Kraken is broadening its reach in European markets by partnering with a firm to cater to clients in Germany.
In a press statement, Kraken announced a collaboration with DLT Finance, licensed by BaFin, which encompasses crypto service entities DLT Securities GmbH and DLT Custody Gmbh, to activate digital asset services for users in Germany.
This year, Germany and Europe have emerged as key regions for cryptocurrency adoption. Several German cities have shown significant interest in events like the Bitcoin (BTC) halving, while the crypto banking sector is primarily dominated by European providers.
Kraken CEO David Ripley commented on the partnership, noting that over 5% of Germans currently own cryptocurrencies, reflecting a growing demand for virtual currencies in the country.
“With this partnership, German clients gain access to crypto assets with the assurance of trading with a top-tier offering as Germany transitions towards a new pan-European regulatory framework,” said David Ripley, Kraken CEO.
Marius Sewing, Co-Founder and CEO of DLT Finance, expressed optimism about the collaboration, stating that partnering with Kraken will promote regulated digital asset adoption across the European Union, especially with the impending implementation of the Markets in Crypto Assets Regulation (MiCA).
MiCA, developed over three years, represents one of the earliest comprehensive crypto regulatory frameworks. It sets out rules for digital asset service providers, covering aspects such as cryptocurrency access, stablecoin issuance, and reserve requirements. Although MiCA was passed into law last year, full implementation is expected by December.
Kraken’s collaboration with DLT Finance aligns with its strategy for European expansion, following its bid to acquire Dutch crypto broker Coin Meester B.V. Additionally, Kraken has obtained E-Money Institution approval from Ireland’s central bank and registration in the Netherlands as a Crypto Service Provider, enabling its operations in Ireland, Italy, Spain, and Belgium.
Summary Review: Kraken’s collaboration with DLT Finance marks a strategic move to extend its services to the German market, amidst Europe’s burgeoning interest in cryptocurrency adoption. With over 5% of Germans already owning cryptocurrencies, the partnership reflects the growing demand for digital assets in the country. As Germany transitions towards a new pan-European regulatory framework, Kraken’s commitment to providing a top-tier offering underscores its dedication to meeting the evolving needs of clients. Moreover, the collaboration aligns with broader efforts to drive regulated digital asset adoption across the European Union, particularly with the impending implementation of the Markets in Crypto Assets Regulation (MiCA). With its expansion initiatives and regulatory approvals, Kraken is well-positioned to further penetrate European markets and strengthen its foothold in the cryptocurrency ecosystem.
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