SCOOP: @krakenfx is pursuing a full banking license in Europe, with a focus on Lithuania as the jurisdiction to secure it, according to a person familiar with the plans. @IanAllison123 reports.

What happened

KrakenFX is actively applying for a full banking license in Europe and has chosen Lithuania as the jurisdiction where it intends to secure that license, according to a person familiar with the plans.

Confirmed

Global impact / market context

A banking license would allow KrakenFX to hold customer deposits in regulated accounts, lower transaction costs, and broaden its service suite, which could increase user trust and attract more institutional and retail crypto customers.

Confirmed

Europe is tightening crypto regulations, and Lithuania has become a hub for fintech firms because its regulator offers a clear, relatively fast path to banking licenses, making it an attractive base for crypto‑related banking services.

Confirmed

What to watch

1. The timeline and outcome of the Lithuanian financial regulator’s decision on KrakenFX’s license application, which will indicate how quickly new services can launch. Confirmed
2. Any announcements from KrakenFX about new deposit or lending products that would become possible once the license is granted, affecting its revenue streams. Confirmed
3. Responses from competing crypto platforms and traditional banks in Europe, which could adjust their strategies based on KrakenFX’s regulatory progress. Confirmed

Evidence

• x.com