Kraken’s EU regulatory clearance marks a significant step in its expansion strategy, enabling the crypto exchange to offer regulated derivatives products to advanced traders across the European Union.
Kraken Secures License to Enter EU Derivatives Market
Crypto exchange Kraken has secured a MiFID license in the European Union, enabling it to offer crypto derivatives products in the block of 27 nations. The license was obtained through the acquisition of a Cypriot investment firm.
Kraken, a well-established cryptocurrency exchange, has expanded its services to include derivatives trading in the European Union.
This move allows users to trade derivative contracts with underlying assets such as cryptocurrencies, commodities, and indices.
The EU derivatives market is subject to regulatory oversight by the European Securities and Markets Authority (ESMA).
Kraken's entry into this market aims to provide users with more complex investment tools.
According to a report, 71% of institutional investors are interested in trading derivatives.
This trend indicates growing demand for such products.
Key Benefits and Features of the New License
The newly secured license will allow Kraken to provide fully compliant and regulated derivatives products to advanced crypto traders across selected EU markets. This milestone marks a significant step in Kraken’s expansion strategy, which focuses on meeting the growing demand for secure and regulated crypto derivatives trading in the EU.
Expansion Plans and Commitment to Regulation
Kraken‘s acquisition of the Cypriot investment firm reflects its confidence in the EU market and underscores its commitment to providing a trusted, regulated environment for advanced crypto traders and investors. The company plans to work on meeting the conditions to go live and launch the products in local EU markets in the coming months.
Regulated Trading Opportunities
The offering will allow advanced traders to gain exposure to a wide selection of assets in a capital-efficient and flexible manner, using a variety of collateral currencies to back their positions. As one of the most active regions for crypto derivatives trading, Europe represents one of Kraken’s key growth markets.
Industry Leadership and Commitment to Security
Kraken has been at the forefront of unlocking advanced, regulated trading opportunities for advanced and institutional investors. In 2019, the company acquired Crypto Facilities, a U.K. FCA-regulated crypto futures platform, which later became the first licensed crypto futures platform in the U.K.
Disclaimer
These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake or hold any cryptoasset or to engage in any specific trading strategy. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available.
