Kraken, one of the largest US-based crypto exchanges, has officially secured a Markets in Financial Instruments Directive (MiFID) license, allowing it to offer crypto derivatives trading across the European Union. The move signals Kraken’s deeper expansion into the European market, where demand for derivatives trading is surging.

According to a February 3 announcement, Kraken obtained the license by acquiring a Cypriot investment firm, which was recently approved by the Cyprus Securities and Exchange Commission. This acquisition gives Kraken a strategic advantage in a region that is rapidly embracing crypto financial instruments.

Kraken’s expansion in Europe has been aggressive over the past two years, securing licenses in Spain and Ireland, launching Kraken Custody in the UK, and acquiring a Dutch crypto broker in 2024. This expansion aligns with Europe’s crypto market growth, which is currently valued at 7 billion dollars and is projected to expand 15 percent annually until 2030.

With the introduction of the Markets in Crypto-Assets (MiCA) regulations, European authorities have established a clear framework for token issuance, anti-money laundering measures, and stablecoin regulations. Crypto.com, OKX, and other major exchanges have already secured MiCA-related approvals, creating a highly competitive market for crypto derivatives. Kraken now joins the race alongside Bitstamp, Backpack, D2X, and Coinbase.

Crypto derivatives, including futures and options, allow traders to speculate on price movements without directly holding the underlying asset. While these instruments provide opportunities for hedging and leverage, they are also considered highly volatile and risky, especially in the fast-moving crypto sector.

Kraken’s latest milestone follows another significant move: the reintroduction of its staking program in the US, two years after legal troubles with the SEC forced its shutdown. The exchange has reported record-breaking revenue, doubling its earnings in 2024 to an impressive 1.5 billion dollars.