Kraken runs UK ops via multiple FCA entities, not a single “crypto custody license”

Kraken is active in the UK, but not under one sweeping crypto license. It uses several FCA-regulated entities with different permissions.

The exchange operates through:
- Payward Limited, registered as a cryptoasset business for AML purposes (FCA register).
- Payward Services Limited, licensed as an Electronic Money Institution (FCA register).
- Crypto Facilities Limited, authorized as an investment firm tied to derivatives (FCA register).

This is not a UK “crypto custody license” covering all products. The UK’s fuller licensing regime for custody and trading is still pending, with applications expected from 30 Sep 2026 and rules due 25 Oct 2027 (FCA register and primary source documentation).

Why it matters for investors. Each permission covers a slice of activity. AML registration handles AML/CTF. EMI covers e-money, not spot exchange ops. Derivatives authorization is separate from spot trading and custody. Protections and obligations differ by entity and service (FCA register).

For users and institutions, wording is key. Registration does not equal FSCS coverage, remove insolvency risk, or standardize protections across products. Ask which entity does what, and what safeguards apply (FCA register).

The direction of travel. The UK is moving from registration toward fuller licensing for custody, trading venues, and stablecoins. Firms with existing FCA-supervised operations may be better positioned once the regime starts. Until then, companies operate via AML registration, EMI permissions, and investment firm authorizations (FCA register).

Bottom line. Kraken has a substantial UK footprint across multiple FCA-regulated entities. But it does not hold a single, broad UK crypto custody license today. The comprehensive regime is still on the way (FCA register).