Tag: European regulation

  • Larry Ellison Abandons $7.5 Billion Oracle Stock Sale After European Regulatory Concerns

    Larry Ellison Abandons $7.5 Billion Oracle Stock Sale After European Regulatory Concerns

    Oracle co-founder and executive chairman Larry Ellison has canceled a planned sale of up to 50 million shares of the company, worth approximately $7.5 billion at Friday’s closing price. The decision came just one day after the trading plan was disclosed in a regulatory filing, and no shares were sold under the arrangement.

    The plan, adopted on June 22, 2026, with an expiry date of October 24, 2026, was structured under Rule 10b5-1, a U.S. mechanism that allows executives to schedule stock sales in advance to avoid insider trading concerns. However, the rapid reversal followed scrutiny from commentators who noted that European market rules would have handled such a disclosure differently. Under EU market abuse regulations, company managers are prohibited from trading in the 30 days before earnings announcements, and there is no direct equivalent to the advance disclosure allowed in the U.S.

    Oracle confirmed in a statement that Ellison does not plan to sell any of his Oracle stock. Ellison controls nearly 40% of the company and has historically funded his spending by borrowing against his shares rather than selling them outright, which would trigger capital gains taxes.

    Oracle’s stock has faced significant pressure this year, falling nearly 23% year-to-date and sitting more than 18% below its June 18 level, the day before Ellison set up the plan. Despite the stock’s decline, the company reported stronger-than-expected quarterly results this week and raised its annual guidance. Oracle added over $30 billion in new AI cloud contracts during the quarter, pushing its total revenue backlog to $664 billion. The company also raised its fiscal 2027 earnings forecast while keeping its capital spending target between $90 billion and $95 billion.

    However, analysts noted that a full recovery in free cash flow remains elusive, and Oracle confirmed that restructuring costs tied to ongoing job cuts would rise by nearly $700 million.

  • Kraken Pursues European Banking License via Lithuania to Expand Regulated Services

    Kraken Pursues European Banking License via Lithuania to Expand Regulated Services

    Kraken, the cryptocurrency exchange operated by parent company Payward, is seeking a full banking license in Europe, with Lithuania identified as the likely jurisdiction for approval. This move would add a banking layer to Kraken’s existing regulatory permissions, including its Markets in Crypto-Assets (MiCA) authorization from the Central Bank of Ireland and its Markets in Financial Instruments Directive (MiFID) license from Cyprus.

    If approved, Kraken would become the only cryptocurrency exchange with a full banking license across the European Economic Area (EEA). The license would allow the firm to offer euro-denominated accounts, hold customer deposits, and provide credit services, subject to product-level approval from regulators. It would also place Kraken under direct banking supervision in Lithuania, where regulators would review how the exchange separates crypto activity from traditional banking services.

    Kraken’s strategy follows a path pioneered by Revolut, which received a specialized European banking license from the Bank of Lithuania in 2018. Lithuania has become a common entry point for fintech firms seeking access to the broader EU market. Other companies with banking licenses in the country include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank.

    Kraken co-CEO Arjun Sethi outlined the company’s long-term licensing strategy at Money20/20 Europe in Amsterdam in June 2026, stating: “The plan for the next 10 years is to get all of these licenses, either through buying an existing business or going de novo in each region and starting from scratch.” This approach builds on earlier milestones, including Kraken Financial’s access to the Federal Reserve’s Fedwire system in March 2026 and authorization from the UAE’s Virtual Assets Regulatory Authority in May 2026.