Kraken is pursuing regulatory approval to operate as a licensed bank in Europe, a move that would let it offer traditional financial services alongside its crypto exchange business. Separately, the exchange won a $22 million arbitration award against accounting firm Mazars, which abruptly dropped Kraken as an audit client in 2022 during a period of intense regulatory pressure on crypto firms in the United States. Together, the two developments paint a picture of a company simultaneously expanding its institutional footprint and cleaning up legal loose ends from the last crypto winter.
A European banking license would allow Kraken to hold customer deposits, offer credit, and compete directly with traditional finance institutions — meaningfully expanding its revenue base and legitimacy in the eyes of institutional clients. The Mazars arbitration win signals that crypto firms are increasingly able to push back legally against actions taken during the 2022-2023 U.S. regulatory crackdown, which could encourage other exchanges to pursue similar claims. Both moves strengthen the case that major crypto exchanges are transitioning from pure-play trading venues into diversified financial institutions.
European Banking Authority regulatory calendar for new license approvals (ongoing, no fixed date). Watch for Kraken's next public filing or announcement confirming which European jurisdiction it applied in. Also monitor any U.S. Congressional hearings on Operation Choke Point 2.0 litigation trends, likely Q3.
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