Kraken secured approval from the UK Financial Conduct Authority (FCA) as an electronic money agency (EMI) and marks a key regulatory milestone in its expansion strategy in the UK.
Kraken, which trades under Payward Ltd, is also one of 31 crypto companies listed in the FCA’s “CryptoAsset Register.”
With each official Kraken announcement, approvals will allow you to issue electronic money and streamline the deposit and withdrawal process for UK-based users. The approval positions Kraken to introduce additional crypto-oriented financial products targeting domestic market growth.
The license highlights Kraken’s strategy to strengthen integration within the UK’s financial ecosystem. According to Bivu Das, UK general manager at Kraken, EMI approval represents a fundamental advancement, creating a pathway to meet the growing local demand for crypto-driven financial solutions.
The decision comes amid wider market changes in the UK, with crypto adoption gaining attention among mainstream investors. Kraken is currently engaging in digital assets, citing FCA data showing approximately 7 million adults in the UK, which is currently around 12% of the adult population. Such engagement indicates a significant increase in crypto integration within a standard investment portfolio.
Since its first major exchange to launch the BTC/GBP pair in 2014, Kraken, which has been active in the UK, reportedly maintains a significant share of the crypto trading volume that GBP has denied. Currently, the exchange offers approximately 300 digital assets to UK traders, enhancing excellence in crypto trading, made up of local GBPs.
The EMI license arrives following recent strategic regulatory results, including the acquisition of the market for the Financial Equipment Directive (MIFID) license through Cyprus and expanding Kraken’s regulatory footprint in Europe. Additionally, the renewal of chained Kraken in 37 US states further demonstrates a positive attitude towards regulatory compliance.
Kraken is preparing for an early public offering (IPO) in the US in 2026, showing confidence in the evolving regulatory environment under the Trump administration. Resolving previous SEC actions without penalties strengthens Kraken’s regulatory reputation and supports positioning in an ambitious global market.
Kraken’s EMI approval is in line with a wide range of industry trends in which regulatory clarity is largely shaping crypto exchange strategies, including similar initiatives pursued by Circle, Bitgo and Gemini. Furthermore, Kraken’s future role in FTX creditor repayments in May 2025 highlights the growing institutional impact on cryptographic systems.
The UK remains a key jurisdiction of Kraken, driven by key GBP-controlled trading activities. According to a study by the FCA, an increase in crypto adoption in the region could drive demand for exchange planning products, potentially strengthening Kraken’s competitive advantage both domestically and internationally.
In the near future, Kraken will begin offering several new cryptography and Fiat in the UK, designed to promote user liquidity management and asset utilities. These initiatives aim to address evolving user expectations for accessible and practical crypto-based financial tools.
Bivu Das, UK general manager at Kraken, highlighted the strategic importance of EMI licensing and described it as the basis for future developments specifically designed for UK investors seeking utility-driven crypto solutions. This focus is consistent with broader market trends in favour of increasing crypto integration in the traditional financial ecosystem.
When securing this EMI license, Kraken meets strict regulatory standards mandated by the FCA, reflecting a balanced approach to innovation and compliance.
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