Kraken Launches Colocation Service with Beeks: Gains EMI License from FCA

Kraken, a cryptocurrency exchange, has announced the launch of its new colocation service. This service is designed for clients and partners who require ultra-fast execution. It aims to improve trading performance and scalability while providing fair and transparent access to Kraken’s global crypto markets.

In addition, Kraken has received approval from the UK’s Financial Conduct Authority (FCA) for an Electronic Money Institution (EMI) license. This allows Kraken to issue electronic money and offer quicker deposit and withdrawal options for UK clients.

Kraken Partners Beeks for Low-Latency Services

“Kraken has spent over a decade continuously enhancing our infrastructure and technology, and this is the next step in that evolution,” said Shannon Kurtas, Head of Exchange at Kraken.

Later this year, Kraken will offer ultra-low latency trading from its European data center. Clients will be able to rent cloud computing services from Beeks, a provider of low-latency solutions. Those with specific technical needs will also have the option to install physical hardware at Kraken’s data center to access colocation services directly.

“By working with Beeks, we’re facilitating even lower latency, more efficient price discovery and deeper liquidity for all of Kraken’s spot and derivative markets,” Kurtas added.

Launching Colocation Services Later

Kraken offers clients to trade over 300 digital assets and six national currencies, including GBP, EUR, USD, CAD, CHF, and AUD. The colocation services will provide low-latency benefits to clients using Beeks Exchange Cloud. For example, traders in London can expect sub-millisecond latency. These services are expected to be available later in the year.

We're excited to announce that @krakenfx, one of the longest standing & secure crypto exchanges has chosen Beeks Exchange Cloud® to power their new #colocation service designed for fairness, accessibility, & high-speed execution: https://t.co/KsW5YbNhmg #PoweredbyBeeks pic.twitter.com/2mt6yVJ1bl

SEC Dismisses Lawsuit Against Kraken

Meanwhile, Kraken announced that the US Securities and Exchange Commission (SEC) has agreed in principle to dismiss a civil lawsuit accusing it of operating as an unregistered securities exchange. The dismissal is with prejudice, meaning it cannot be refiled and comes without penalties or an admission of wrongdoing.

Kraken emphasized that the change follows a shift in the US cryptocurrency regulatory environment. The company has reintroduced on-chain staking services for US customers and described the dismissal as a “turning point” for the sector, as reported by Finance Magnates.