The regulatory crackdowns in the US have challenged crypto firms to pursue overseas markets. An official publication by the San Francisco crypto exchange Kraken revealed that the Ireland regulators have a green-lighted its Virtual Asset Service Provider License (VASP) permit.
The license will allow Kraken to provide digital assets to Ireland customers. The permit potrayed that at the initial application stage; the crypto exchange registered its affiliate, Payward Europe Solutions Limited, as a VASP.
Ireland’s Virtual Asset Service Provider License Requirements
The documentation was submitted to the central bank of Ireland (CBI) for further regulatory examination. An April 18 tweet from Kraken revealed that the licensing demonstrated that the crypto exchange was a compliant company.
Also, the regulatory approval illustrated that Kraken fulfills the Bank Secrecy Act and met the global compliance requirement of the anti-money laundering laws (AML).
A follow-up announcement from Karken’s European operation manager Mark Jennings stated that the crypto exchange will work with the Irish regulators to push for mass adoption of crypto. He argued that implementing a well-structured crypto regulatory framework will increase the adoption of digital assets.
Jennings disclosed that the crypto firm plans to leverage its expertise and proprietary infrastructure to introduce unique digital assets to the Irish market. He stated that Kraken intends the development of digital assets that uphold conformity.
In addition, Jennings’ April 18 address demonstrated that Kraken is a customer-centric entity that will create more user value in the long run. He announced that the Kraken Ireland team would develop additional digital assets products to bolster traders’ experiences.
Per the VASP licensing conditions, the Irish regulators are entitled to monitor Kraken’s operation. On the other hand, the Kraken team is tasked to safeguard the user from exploitative business practices.
Comparison Between Crypto Regulations in Europe and US
News concerning the approval of Kraken’s Irish VASP license has thrilled the company’s key stakeholders. Kraken’s managing director Curtis Ting’s report revealed that the Irish regulators prove to be more informed on crypto regulations.
Unlike other countries, Ting illustrated that Ireland implemented clear crypto regulations. Evaluating Ireland’s crypto policies, Ting observed that the law was sustainable and had sufficient clarity.
He later compared the Ireland VASP regulation with that of New York. The Irish regulatory approach was faster and more straightforward than US crypto regulations.
Evidently, in recent days, US regulators have been engaging in prolonged debates concerning the clarity of the crypto regulations. On April 18, a presentation by the chair of the Securities and Exchange Commission (SEC), Gary Gensler, revealed that the new crypto regulations aimed to safeguard the customer from exploitation.
Gensler argued that the amendment in the crypto regulation targeted to address crypto crimes in the American market.
Speaking at the House of Financial Services, Committee, other financial regulators argued that the SEC regulation lacked clarity. They regretted that unclear regulation had triggered crypto firms to pursue suitable markets outside the US.
In early February, Kraken settled a court fine amounting to $30 million after the SEC filed a lawsuit in the US court. The SEC argued that the crypto exchange contravened the regulation by providing unregistered digital assets to the user.
Before the SEC charges, Kraken was sued by the US Office of Foreign Assets Control (OFAC) for violating the US crypto regulations. Notably, the ongoing regulatory scrutiny in the US has motivated crypto firms to enter the European market.
A recent update from the European regulators revealed that the region would implement the market for crypto assets (MiCA) in the coming days. They announced that the MiCA regulations would introduce new crypto licensing in the 27-member country.
The MiCA regulations were formulated to bridge the gap between centralized and decentralized finance. The regulators have integrated innovative financial tools to control unhealthy competition in the crypto sector.
Besides investors pursuing the new EU market, others have revealed plans to enter the Hong Kong market. The quest to become Asian crypto capital inspired the regulators in the Hong Kong market to adopt friendly crypto regulations.
The suitable business environment in Hong Kong has inspired more than 20 foreign crypto firms to seek Hong Kong VASP licensing. The regulators reported that the number of investors planning to explore new opportunities in Hong Kong has increased to 80.