Kraken Secures Regulatory Approval for Crypto Derivatives in EU
Kraken Secures Approval for Crypto Derivatives in EU
- Kraken has obtained regulatory approval to offer crypto derivatives across the European Economic Area (EEA).
- This follows the acquisition of a Cypriot investment firm, granting a Markets in Financial Instruments Directive (MiFID) license from the Cyprus Securities and Exchange Commission (CySEC).
- The exchange plans to serve both retail and institutional investors in the EU.
- Users in countries like France, Germany, and the Netherlands will have access to Kraken's perpetual and fixed maturity futures contracts, with daily trading volumes estimated between $1 billion and $2 billion.
- Kraken aims to enhance existing products rather than launch new contracts, focusing on improving liquidity and reducing execution costs.
- Derivatives now constitute a significant portion of Kraken's overall trading activities, reflecting a broader trend where derivatives account for up to 75% of global crypto market volume.
- Recent expansions include acquiring Crypto Facilities and NinjaTrader, reinforcing Kraken's position in regulated markets.
- Kraken has also introduced its Embed application in Europe, allowing neobanks and fintech platforms to facilitate spot and derivatives trading.
- The EU is rapidly growing in digital assets, positioning Kraken favorably to meet demand for regulated derivatives trading.