Kraken Expands Its Crypto Derivatives Offering to the European Union

Digital asset exchange giant Kraken has taken another step in its global strategy. According to the exchange, it has secured regulatory approval to offer crypto derivatives in the European Union.

Digital asset exchange giant, Kraken, has taken another step in its global strategy. According to the exchange, it has secured regulatory approval to offer crypto derivatives in the European Union. This follows a recently acquired license in Cyprus.

Kraken Expands Derivatives Offering to EU After Cyprus Nod

According to the exchange’s announcement, Kraken will be expanding its crypto derivatives services to users across the European Economic Area. This follows an earlier move that saw the platform acquire a Cypriot investment firm earlier this year.

The acquisition granted the cryptocurrency entity a Markets in Financial Instruments Directive (MiFID) license. This will allow the cryptocurrency entity to serve retail and institutional investors in the EU. The permit was granted by the Cyprus Securities and Exchange Commission (CySEC), marking a notable expansion for the exchange across continents.

It is worth noting that this latest update is part of Kraken’s recent growth strategy. In a recent report, Coinspeaker noted that Kraken now offers commission-free access to US-listed stocks and ETFs for clients in ten American states.

Again, this recent update follows a similar rollout in the United Kingdom. The UK officials granted the exchange access to start offering regulated derivatives trading products under the supervision of the Financial Conduct Authority.

Now, users in EU countries, including France, Germany, the Netherlands, and others, will gain access to Kraken’s existing set of perpetual and fixed maturity futures contracts. According to Kraken’s Head of Exchange, Shannon Kurtas, these contracts already account for significant trading volume, which she estimates to be between $1 billion and $2 billion daily.

“The focus isn’t on launching new contracts but rather on improving the existing products that are already well established with strong liquidity and mature markets. We have the necessary infrastructure in place for lower execution costs and greater efficiency for users moving funds in and out of the system.”

Derivative Trading Now a Core Business for Kraken Exchange

Crypto derivatives have become a major part of Kraken’s overall global offering. The firm estimates that derivatives now make up the majority of its overall trading activity.

On a broader scale, global crypto markets have seen derivatives take the lead, making up to 75% of the total volume.

Since the U.S. SEC dropped its lawsuit, Kraken has been expanding. Its growth includes acquiring Crypto Facilities, a U.K.-based futures platform, and NinjaTrader, a U.S. derivatives platform. These moves show Kraken’s aim to be a leader in regulated crypto markets.

The crypto exchange recently launched its Embed application in Europe. This allows neobanks and fintech platforms to offer their customers both spot and derivatives trading. Larger crypto firms are increasingly turning to agile jurisdictions such as Cyprus and Malta. These locations help them get regulatory approval more quickly.

It is essential to add that the EU is one of the fastest-growing areas for digital assets. Kraken’s move puts it in a strong position to meet the region’s increasing demand for regulated and efficient derivatives trading.

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