Kraken faces complex UK crypto licensing and inactive Fed master account

Kraken operates in the United Kingdom through three FCA‑regulated entities: Payward Limited (registered for anti‑money‑laundering), Payward Services Limited (holding an Electronic Money Institution licence) and Crypto Facilities Limited (authorised for derivatives). This multi‑entity structure provides a regulated presence but does **not** constitute a single, all‑encompassing crypto‑custody licence. The UK’s broader crypto‑licensing regime is still under development, with applications expected to open on 30 September 2026 and the framework to take effect on 25 October 2027.

Separately, the U.S. Federal Reserve approved Kraken Financial’s master account in March 2026, making it the first crypto‑focused institution granted direct access to Fed services. Four months later the account remains dormant while Kraken completes technical, compliance and operational steps. As a result, dollar wire transfers continue to be routed through an intermediary bank, delaying the settlement efficiencies the Fed account would provide. The approval was issued under a specially tailored Tier 3 framework for Special Purpose Depository Institutions, a rare arrangement that has drawn questions from lawmakers.