1. QiAi QuestsHome
  2. Crypto & Markets

Kraken Registers as a Virtual Asset Service Provider in Ireland: What It Means for the Crypto Industry

• Crypto & Markets • 66 views

According to reports, the US cryptocurrency exchange Kraken has registered a subsidiary of Payward Europe Solutions as a virtual asset service provider (VASP) with the Central Bank

Kraken Registers as a Virtual Asset Service Provider in Ireland: What It Means for the Crypto Industry

According to reports, the US cryptocurrency exchange Kraken has registered a subsidiary of Payward Europe Solutions as a virtual asset service provider (VASP) with the Central Bank of Ireland. Kraken, through its subsidiary, became the third US encryption platform approved to operate in EU countries. The exchange Gemini and Coinbase were authorized as VASP in July 2022 and December 2022, respectively.

Kraken obtained Irish license to become a virtual asset service provider

Cryptocurrency is rapidly becoming a mainstream investment and payment option globally. Over the years, cryptocurrency exchanges have been popping up to facilitate cryptocurrency transactions across borders. In recent news, the US cryptocurrency exchange Kraken has registered a subsidiary of Payward Europe Solutions as a virtual asset service provider (VASP) with the Central Bank of Ireland. The move by Kraken will make it the third US encryption platform approved to operate in EU countries after Coinbase and Gemini, who were authorized as VASP in December 2020 and July 2021, respectively. But what does this news mean for the cryptocurrency industry? Let’s take a closer look.

What is a VASP?

A VASP is a legal entity that provides services to customers that allow them to buy, sell, or transfer a virtual asset such as cryptocurrency. In order to become a VASP, a company must comply with regulatory requirements and receive approval from the relevant authorities. This includes developing internal controls, conducting due diligence on clients, and implementing anti-money laundering and counter-terrorism financing protocols.

Why is Kraken’s VASP registration with the Central Bank of Ireland significant?

Kraken’s registration with the Central Bank of Ireland is important for a number of reasons. Firstly, it indicates the company’s intention to expand its services into European markets. Secondly, it means that Kraken has successfully met the regulatory requirements to operate as a VASP, demonstrating its commitment to complying with anti-money laundering and counter-terrorism financing protocols. Finally, it highlights Ireland’s proactive stance towards cryptocurrency regulation, showing that the country is open to embracing the digital asset class.

What are the benefits of Kraken’s VASP registration?

Kraken’s VASP registration provides several benefits for the company and its users. Firstly, it enables the platform to offer a broader range of cryptocurrency and fiat currency trading pairs, expanding its market reach. Secondly, it strengthens Kraken’s reputation as a trustworthy and legitimate cryptocurrency exchange. Thirdly, it provides users with greater confidence in the security and safety of their digital assets, as Kraken will be subject to ongoing regulatory oversight.

Conclusion

Kraken’s registration as a VASP in Ireland is a significant development for the cryptocurrency industry. It demonstrates the increasing mainstream adoption of cryptocurrency and the willingness of regulators to work with the industry to develop responsible regulatory frameworks. As the popularity of cryptocurrency continues to rise, we can expect to see more companies follow in Kraken’s footsteps and seek approval to operate as VASPs in jurisdictions around the world.

FAQs

1. What is a VASP?
A VASP is a legal entity that provides customers with services that allow them to buy, sell, or transfer virtual assets such as cryptocurrency.
2. How does VASP registration benefit users?
VASP registration provides users with greater confidence in the security and safety of their digital assets, as companies must comply with regulatory requirements, including anti-money laundering and counter-terrorism financing protocols.
3. What does Kraken’s VASP registration signal for the cryptocurrency industry?
Kraken’s VASP registration demonstrates the increasing mainstream adoption of cryptocurrency and the willingness of regulators to work with the industry to develop responsible regulatory frameworks.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/crypto/17378.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 04/19/2023 10:25
Next 04/19/2023 10:45

Related recommendations