European Neobank Bunq Partners With Kraken to Launch Regulated Crypto Trading Across EU Markets

Amsterdam-based challenger bank Bunq expands into cryptocurrency services through Kraken integration, leveraging MiCA regulations to offer 300+ digital assets to its 12.5 million users amid ECB stability warnings.

Europe's second-largest neobank enters crypto arena through strategic partnership with Kraken, offering access to Bitcoin and Ethereum in 31 markets while highlighting MiCA compliance - a calculated move during ECB's heightened scrutiny of digital asset risks.

Regulatory First-Mover Strategy

Bunq confirmed through its 18 July 2024 press release that users can now trade 317 cryptocurrencies directly through its banking app, leveraging Kraken's institutional infrastructure. The service went live simultaneously in Germany, France, and Ireland - markets representing 65% of Bunq's customer base.

CEO Ali Niknam emphasized the "three-year preparation" for this launch during a virtual press briefing, noting Bunq became the first neobank to complete MiCA compliance audits six months ahead of the December 2024 deadline.

Market Context and Competitive Landscape

The launch follows Bunq's 94% year-over-year user growth reported last quarter, partially attributed to its early adoption of the ECB's 4% interest rate ceiling for deposit accounts. Competitor Revolut continues facing regulatory hurdles, with the Bank of Italy blocking its crypto services in March 2024 over anti-money laundering concerns.

Kraken EU Managing Director Marcus Hughes told Reuters via email: "This partnership model sets precedent for traditional finance integration - we handle exchange infrastructure while banks maintain customer relationships."

Risk Management and ECB Warnings

The neobank implements daily trading limits equivalent to €10,000 and mandatory two-hour cooling periods for new crypto users. These safeguards directly address concerns raised in the ECB's July 2024 Financial Stability Report, which noted crypto ownership among EU adults doubled since 2022.

ECB Executive Board Member Elizabeth McCaul cautioned in a 19 July statement: "While innovation progresses, banks must prevent crypto volatility from infecting traditional payment systems."

Historical Precedents and Market Evolution

Bunq's strategic pivot recalls Revolut's 2017 crypto trading debut, which attracted 1 million users in three months but later faced regulatory penalties. In 2021, Germany's BaFin ordered N26 to limit crypto transactions after identifying systemic risk management gaps.

The MiCA framework itself builds upon lessons from the 2018-2020 "Crypto Winter," when unregulated exchanges collapsed, eroding €12 billion in European investor assets. Analysts note today's regulated entrants like Bunq benefit from clearer operational guidelines and institutional-grade partners.

As traditional banks like ING experiment with blockchain settlements, Bunq's crypto integration suggests neobanks aim to capture both retail traders and enterprise clients seeking compliant on/off ramps. With Coinbase securing its MiCA license last week, industry observers anticipate accelerated consolidation in Europe's digital asset infrastructure sector.

https://redrobot.online/2025/04/european-neobank-bunq-partners-with-kraken-to-launch-regulated-crypto-trading-across-eu-markets/