Kraken is pursuing a banking license in Lithuania, according to a person familiar with the plans. The move signals the San Francisco-based exchange intends to deepen its regulatory footprint in Europe rather than operate as a pure cryptocurrency platform.
Lithuania's financial regulator oversees banking and payment institution licenses under EU law. A banking license would subject Kraken to capital requirements, deposit insurance rules, and other obligations that shape how the exchange holds customer funds and manages risk. The jurisdiction is part of the eurozone and has granted cryptocurrency-related licenses to other firms, though the specifics of Kraken's application timeline and approval likelihood remain unclear.
The move comes as European regulators tighten rules on crypto platforms. The EU's Markets in Crypto Regulation (MiCA) took effect in December 2023, creating a licensing framework for digital asset service providers. A banking license sits above that framework and conveys more formal financial institution status, opening doors to traditional banking services like lending or deposit-taking that a crypto-only platform cannot offer.
Kraken declined to comment on licensing plans. Lithuania's financial authority has not publicly disclosed any pending application from the company.