Kraken, a cryptocurrency exchange, has reached a significant achievement in the European market by acquiring its fourth virtual asset service provider (VASP) license. The Dutch Central Bank has granted Kraken a VASP registration, enabling it to offer various digital asset services such as exchange, transfers, custody, and wallet services in the Netherlands.

The VASP registration signifies adherence to a comprehensive regulatory framework designed to oversee entities providing digital asset-related services. It entails compliance with multiple measures to ensure transparency, data protection, anti-money laundering, and prevention of terrorist financing, aligning with the regulation on Markets in Crypto-Assets (MiCA) within the European Union.

Expanding its presence in Europe, Kraken has successfully obtained VASP licenses in Spain, Italy, Ireland, and the Netherlands, while operating crypto services in Belgium through a fully licensed subsidiary. The company aims to capitalize on the Netherlands' tech-savvy and crypto-friendly environment, where approximately 20% of citizens reportedly own digital assets.

Kraken's strategy in 2023 involved strengthening its position in the Netherlands by acquiring the Dutch-based crypto exchange, Coin Meester B.V., pending regulatory approval.

Despite its European success, Kraken faced legal challenges in the United States. In November 2023, the US Securities and Exchange Commission filed a lawsuit against the San Francisco-based firm, alleging commingling of customer funds and failure to register as a securities exchange. Kraken settled the charges by agreeing to a $30 million deal, which included suspending staking products and services for its US customers.