Latest news with #MiFID
Yahoo
2 days ago
- Business
- Yahoo
Robinhood's Tenev confirms EU probe, reaffirms stock tokens on Bloomberg TV
-- Robinhood Markets Inc (NASDAQ:HOOD) CEO Vlad Tenev on Tuesday defended the company's foray into tokenized equity offerings, describing it as a transformative step for capital markets and underscoring efforts to satisfy European regulators. Speaking to Bloomberg TV, Tenev outlined the mechanics of new derivative-based stock tokens that provide exposure to over 200 publicly listed companies in the EU, and pointed to broader ambitions to unlock retail access to private firms in the U.S. and UK. The products are now live across the European Union under Lithuania's regulatory purview, where officials have opened an inquiry into the structure and compliance footing of the offering. 'I think they have some questions. You know, they want to make sure that everything is proper, because it's a new, innovative offering, and we're confident,' Tenev said, noting that Robinhood is committed to transparency and welcomes regulatory scrutiny. The stock tokens are legally classified as derivatives under the EU's MiFID and MiCA frameworks and are not direct representations of equity ownership. Instead, they are backed by traditional custody arrangements, typically a U.S. broker, that facilitate token issuance and redemption through a mint-and-burn mechanism designed to mirror price exposure to the underlying asset. Valuation of the tokens tied to private companies remains a more complex issue, hinging on negotiated secondary market trades often limited to institutional or high net worth participants. 'There is a secondary market for private assets... what this would do is it would unlock that, so it's not just the high net worth institutional market, but it unlocks it to retail exposure as well,' Tenev explained, portraying the move as a democratization of capital access. Robinhood debuted the effort with a promotional giveaway, $1 million worth of OpenAI token exposure and $500,000 of SpaceX, to 'test the waters.' Since the pilot, the firm has received a wave of inbound interest from private companies seeking similar exposure. 'I've had a deluge of inquiries private companies that actually want to access retail, to have their shares tokenized,' Tenev said. Despite momentum in the EU, Robinhood's crypto-token equity products are not yet available in the U.K. or U.S., markets with more entrenched regulatory systems and higher institutional inertia. However, talks with relevant authorities are underway, and Tenev expressed optimism about U.S. adoption in particular. 'Chairman Atkins of the SEC gave an interview about tokenization. He called it a great innovation, and we agree with that.' Tenev stopped short of providing a specific launch timeline for the U.K. or U.S., cautioning that entrenched legacy infrastructure may drag on adoption. 'We haven't even fully moved off of mainframe in the U.S., so I think it could take time,' he said, though he maintains that Robinhood's recent product push could help accelerate regulatory openness to this model. The crypto-powered instruments aim to address liquidity frictions and limited accessibility that have long plagued retail market participants, especially where private equity is concerned. By combining digital rails with traditional financial safeguards, Robinhood is betting that tokenized equities could become the next frontier in hybrid asset innovation. Related articles Robinhood's Tenev confirms EU probe, reaffirms stock tokens on Bloomberg TV EU nears US trade deal with Airbus exemptions, Ferrari left out - Bloomberg Morgan Stanley cuts Ciena as profit lags AI revenue gains Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
25-06-2025
- Business
- Business Wire
Kraken Secures MiCA License from Central Bank of Ireland, Cementing Leadership in European Crypto Markets
DUBLIN--(BUSINESS WIRE)--Kraken, a technology platform built on crypto, today announced it has been granted a license under the European Union's Markets in Crypto-Assets Regulation (MiCA) by the Central Bank of Ireland. The license marks a pivotal milestone in Kraken's European expansion, unlocking the ability to scale faster across the region by offering regulated services and engaging directly with clients across all of the European Economic Area. Kraken has spent the past several years building a regulatory and operational foundation designed to scale globally — enabling the company to quickly capitalize on growth opportunities as new regulatory frameworks take shape around the world. MiCA builds on this foundation, enabling unified passporting and pan-European service delivery — significantly expanding Kraken's market reach. "Securing a license from the Central Bank of Ireland, with its long heritage and experience as a rigorous financial regulator, isn't just about compliance. It's a powerful signal of Kraken's commitment to expanding the crypto ecosystem through responsible innovation,' said Arjun Sethi, co-CEO of Kraken. 'Being the first major global crypto platform to receive authorization from the CBI affirms Kraken's commitment to building for the long term. We believe trust is the most valuable currency in crypto, and it's something you earn. Over the past several years, our team has worked tirelessly to meet the CBI's gold standard regulatory expectations. This license reflects that effort and places us in a strong position to expand our product offering, grow our institutional and retail client base, and deliver secure, accessible, and fully regulated crypto services to millions more people across the EU. 'We're deeply grateful to the Central Bank of Ireland for its professionalism, and to the Irish Government and IDA for their consistent support. This collaboration is a blueprint for how public and private sectors can work together to build a more secure, innovative financial future for Europe, and we're proud to be leading the way." Expanding on a Strong Foundation Kraken already holds Virtual Asset Service Provider (VASP) registrations in key European markets including Ireland, Belgium, France, Italy, the Netherlands, Poland and Spain. The company has long been a leading force in euro-denominated crypto trading, having introduced the first BTC/EUR trading pair in 2013. Today, Kraken's platform is the most liquid and trusted for euro trading, reflecting its deep roots in the region. The euro now accounts for 17.5% of global fiat spot crypto trading volume, more than doubling compared to a year earlier — a clear indicator of the growing prominence of European markets. With the MiCA license now in place — alongside MiFID and EMI licenses already secured by the group — Kraken is able to extend its regulated offering to millions of clients across the EU. Together, these licenses support significant growth opportunities across retail, professional, and institutional client segments, including in spot trading, derivatives and payments. For clients, MiCA provides added assurance that Kraken's services adhere to a consistent, EU-wide set of regulatory standards — including stronger consumer protections, increased transparency, and robust oversight — formalizing the high standards Kraken has long upheld and reinforcing long-term trust in the market. Built for Scale and Compliance In recent years, Kraken has laid the groundwork to lead under MiCA by expanding its operational, product, and regulatory footprint across Europe: Expanded geographic reach through the acquisition of Dutch crypto broker BCM (2024), enabling direct access to key EU markets. Launched MiFID II-regulated derivatives, offering compliant futures trading for sophisticated European clients. Broadened asset capabilities via the acquisition of NinjaTrader (2025), paving the way to integrate traditional finance derivatives. Partnered with Mastercard, paving the way for Kraken clients across the UK and Europe to soon spend their crypto assets at over 150 million merchants worldwide. Deployed Kraken Embed, a turnkey Crypto-as-a-Service solution, now live with Dutch neobank bunq. Kraken will continue to invest in localized experiences, partnerships, and talent across Europe to meet the diverse needs of local markets. With the MiCA regime now in effect, Kraken is entering its next phase of European expansion — delivering trusted, innovative, and compliant crypto services to users across the continent. About Kraken Kraken is a technology platform built on crypto that unlocks access and reduces inefficiencies to drive financial freedom — for the crypto economy and beyond. Millions of individuals, professional traders, and institutions around the world use Kraken to trade digital and traditional assets, including cryptocurrencies, national currencies, U.S. futures, and U.S.-listed stocks and ETFs. Kraken markets can be monitored and traded via the web or through the Kraken and Kraken Pro iOS and Android apps. Futures platforms by NinjaTrader, a Kraken company, are available on desktop, web, and mobile via
Yahoo
22-05-2025
- Business
- Yahoo
Crypto.com Buys Allnew Investments to Secure MiFID License to Offer Derivatives in Europe
Crypto exchange said it bought AN Allnew Investments to gain a license allowing it to offer derivatives across the European Economic Area (EEA). The Markets in Financial Instruments Directive (MiFID) license was issued to Allnew by the Cyprus Securities and Exchange Commission (CySEC), the exchange said in a website posting. It grants the exchange the right to offer a range of financial products in the 27 nations of the European Union alongside Iceland, Liechtenstein and Norway. This acquisition bolsters presence in Europe. The exchange secured a Markets in Crypto Assets (MiCA) license in January so it could offer crypto custody and exchange services across the EEA. The company declined to say how much it paid for Allnews. Crypto exchanges have been moving into derivatives to unlock new sources of profit. The company joins rivals including Gemini and Kraken in gaining MiFID licenses to offer derivatives in Europe. Kraken's license was also obtained through acquisition of the holder. Earlier this month, Coinbase spent $2.9 billion to buy options platform Deribit to strengthen its position in the U.S. derivatives market.
Arabian Post
20-05-2025
- Business
- Arabian Post
Kraken Gains EU Access Through Cyprus Derivatives Licence
Cryptocurrency exchange Kraken has secured a Markets in Financial Instruments Directive licence in the European Union by acquiring Cypriot investment firm Greenfields Wealth, formerly known as Pacific Union Group. The acquisition, approved by the Cyprus Securities and Exchange Commission , enables Kraken to offer regulated crypto derivatives to advanced traders across selected EU markets. This strategic move allows Kraken to operate under the EU's MiFID framework, facilitating the provision of over-the-counter derivatives, including contracts for differences , to retail clients within the European Economic Area. The licence also permits Kraken to passport its services across other EU member states, potentially reaching a broader base of European traders and investors. Shannon Kurtas, Kraken's Co-General Manager of Pro & Exchange, stated that the acquisition reflects the company's commitment to providing a trusted, regulated environment for advanced crypto traders and investors. She emphasized that the European market remains a top priority for Kraken as it continues to expand its services globally. Kraken plans to introduce a range of derivatives products, including regulated futures and options, designed to meet the needs of sophisticated crypto investors in Europe. These offerings will enable traders to gain exposure to various digital assets in a capital-efficient and flexible manner, using a variety of collateral currencies to back their positions. The acquisition of Greenfields Wealth provides Kraken with a strategic entry point into the European derivatives market. Cyprus has emerged as a hub for financial services firms seeking to operate across the EU, thanks to its regulatory framework and MiFID passport capabilities. The approval from CySEC enables Kraken to compete more effectively in the European crypto derivatives market. Kraken has a history of pursuing regulated derivatives trading opportunities. In 2019, the company acquired Crypto Facilities, a UK-based crypto futures platform regulated by the Financial Conduct Authority , enhancing its presence in the UK market. This acquisition made Kraken the first licensed crypto futures provider in the United Kingdom. The European crypto derivatives market is experiencing significant growth, with projections indicating a 15% growth rate until 2030. Kraken's entry into this market positions the company to capitalize on the increasing demand for secure and regulated crypto derivatives trading in the EU. Kraken's approach to regulatory compliance has been systematic, with the exchange working to secure necessary approvals across different jurisdictions. This strategy helps ensure that its services meet local regulatory standards while providing users with access to advanced trading options. The company's expansion into the European market aligns with the EU's Markets in Crypto-Assets regulation, which aims to address issues related to anti-money laundering, token issuance, and stablecoin-specific rules. Kraken's acquisition of the MiFID licence represents a strategic move to capture opportunities in Europe's expanding derivatives market. Arabian Post – Crypto News Network
Yahoo
13-05-2025
- Business
- Yahoo
Gemini Secures MiFID II License From Malta to Offer Derivatives in EEA
Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, said it secured a MiFID II license from Malta allowing it to offer derivative products across the European Economic Area. The license from Malta Financial Services Authority (MFSA) will enable the company to offer perpetual futures and other derivatives across the European Union's 27 nations plus Iceland, Liechtenstein and Norway, once the required conditions are met, Gemini said Friday. "There are technical and operational steps to ensure we launch these products in a compliant and secure manner, which we hope to do so in the coming months," a Gemini spokesperson said. Exchanges have been moving into derivatives as the next frontier for revenue growth. One of the largest crypto exchanges, Coinbase (COIN), on Thursday said it agreed to pay $2.9 billion to buy bitcoin BTC and ether ETH options platform Deribit. The purchase gives it an immediate "dominant foothold" in the derivatives space, a note from Benchmark analyst Mark Palmer said at the time. In Europe, Gemini is following in the footsteps of rival Kraken, which secured a MiFID license in February by buying a Cyprus-based investment firm. "This is a hugely exciting development in our 2025 European expansion, as it puts Gemini one step closer to offering our derivative products to both retail and institutional users in the EU and the EEA," the company (May 9, 15:26 UTC): Adds Gemini comment in third paragraph. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
