LATEST: Kraken is pursuing a full banking license in Lithuania, which would make it the first crypto exchange to hold such a status in Europe.

What happened

Kraken announced that it is applying for a full banking licence in Lithuania, which would make it the first cryptocurrency exchange in Europe to obtain such a licence.

Confirmed

Global impact / market context

A banking licence would let Kraken hold customer deposits directly and offer traditional banking services, potentially increasing trust and attracting more users who prefer regulated financial institutions.

Analyst inference

Europe’s crypto market is seeking clearer regulation, and few exchanges have banking status; Kraken’s move could set a precedent and pressure competitors to pursue similar licences.

Analyst inference

What to watch

1. Progress of Lithuania’s regulator in reviewing Kraken’s licence application, which will indicate how quickly the bank‑like status could be granted. Proposed
2. Reactions from other European crypto exchanges, as they may launch their own licence pursuits or adjust business models. Analyst inference
3. Changes in Kraken’s deposit and lending product offerings, which could affect its revenue streams and user growth. Analyst inference

Evidence

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