Kraken aims to go beyond cryptocurrency and the United States. The team is working on obtaining a European license and will most likely establish an NFT marketplace in the near future.
Kraken, a cryptocurrency exchange, does not want to fall behind in the battle to control the global cryptocurrency industry, therefore it is working hard to expand outside of the United States.
Europe is the first, and also the most difficult, destination. Jesse Powell, CEO of Kraken, revealed in an interview with the German news site Handelsblatt that the exchange is in the process of obtaining a license to operate lawfully on the continent.
Powell anticipates that everything will be completed by the end of 2021. He wouldn’t say how far along the talks are, but he did say that the company is particularly interested in Malta, Luxembourg, and Ireland, all of which the Kraken team is now in talks with.
Coinbase vs. Kraken
Obtaining this license is critical for Kraken’s development into international markets. The company had received regulatory permission in the United Kingdom, but following Brexit, the license lost its validity because it could only be used in the United Kingdom.
Another noteworthy aspect of this strategic decision is that it will allow Kraken to compete with Coinbase in North America. This exchange recently became public and has a German license to operate.
Kraken, unlike Coinbase, is now uninterested in engaging with German regulations. Powell added that the corporation had spoken with Germany’s BaFin, but that the country’s regulations were too complicated, restrictive, and expensive for the company to consider.
Kraken, on the other hand, has one edge over Coinbase: The Wyoming Banking Board approved its application for a special purpose depository institution (SPDI) charter in mid-September 2020. Kraken was the first exchange in Wyoming to be granted SPDI bank status, as well as the state’s first freshly established (de novo) bank since 2006.
DeFi Booster + Bank + NFT Marketplace
Kraken is focusing on other tactics to expand its impact inside the crypto sector in addition to its expansion into Europe.
The exchange is planning to go public, following in the footsteps of Coinbase. Powell noted that they are working through all of the complicated regulatory procedures, but that Coinbase’s direct listing has made things easier for them.
“We have a massive checklist with 1000 activities to complete. Coinbase was the first to go public, which is wonderful for us.”
Kraken is also considering entering the NFTs and Decentralized Finance markets. According to Powell, Kraken follows the scene of games like Axie Infinity and phenomena like Crypto Punks, in addition to offering its players access to the governance powers of DeFi token staking.
“We’d like to establish a marketplace where people may trade NFTs. In the future years, I believe we will see a variety of uses for NFTs.”