Kraken subsidiary Crypto Facilities receives FCA approval in the UK
November 16, 2021, 6:03AM EST
1 min read
Crypto Facilities, a wholly owned subsidiary of crypto exchange Kraken, has been granted a MLR license with the the U.K.'s financial regulator, the Financial Conduct Authority (FCA).
This license means that the company is compliant with money laundering regulations in the country, as far as its cryptocurrency activities go. It also shows that it maintains the same anti-money laundering standards as FCA-regulated banks have to meet.
This means that Kraken can continue to offer derivatives trading to its customers in the U.K. through Crypto Facilities, which is one of few firms that has a license to do so. Crypto Facilities does not let retail traders use its services, however, due to the FCA's blanket ban on such activities. Other firms provide access to similar services by being located abroad and not registering with the FCA.
Getting the license enables Crypto Facilities to offer further financial instruments related to cryptocurrencies. "It paves the way for us to enhance and expand our offering, ensuring clients have access to the various exposures that best fit their investment needs,” said Crypto Facilities CEO Gary Worrall, in a statement.
Kraken is also planning to add EUR denominated contracts in the future, according to a Kraken spokesperson. "While this product is not reliant on the MLR registration, the development paves the way for a suite of new products and solutions for members who are active in the crypto sphere, which we plan to announce sometime in 2022," they said.
Other firms that have been granted MLR licenses include Mode, two Gemini entities, Archax, Ziglu and Digivault.
This story has been updated with additional comments from a spokesperson.
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