Kraken Smashes Barriers: Launches Regulated Crypto Derivatives in Europe

Kraken just flipped the script—Europe’s crypto traders now get legal, high-stakes derivatives without the regulatory side-eye. Finally, a casino where the house doesn’t always win (disclaimer: past performance not indicative of future results).

Why it matters: While traditional finance still argues about ’blockchain not Bitcoin,’ Kraken’s move proves regulators are warming to crypto’s wildest instruments—as long as they get their cut.

The fine print: This isn’t your unlicensed offshore leverage farm. Full FSA compliance means position limits, KYC hoops, and all the other buzzkills that keep bankers sleeping soundly.

Bottom line: When even derivatives go legit, maybe—just maybe—crypto’s growing up. Or Europe’s just desperate for taxable revenue streams. Place your bets.

• Kraken offers $1B-$2B daily volume futures contracts in Europe
• MiFID II license enables Kraken to offer regulated derivatives
• The exchange’s expansion strengthens position in growing European market

Kraken, a top cryptocurrency exchange, has expanded its derivatives trading services across Europe. The company now offers regulated futures contracts to retail and institutional customers in the European Economic Area (EEA). This development comes after the exchange acquired a Cypriot investment firm earlier this year, which allowed the exchange to secure a license under the European Union’s Markets in Financial Instruments Directive (MiFID II).

These derivatives products include both perpetual and fixed maturity futures contracts. These contracts attract a daily trading volume of $1 billion and $2 billion. Kraken aims to provide European customers access to improved liquidity, low costs and efficient fiat rails for collateral transfers.

Crypto Firms Flood Regulated Derivatives Market

The company’s move into Europe shows the growing demand for regulated crypto derivatives in the region. Europe’s digital asset trading market continues to grow rapidly as more sophisticated investors seek regulated services. Kraken is now available to clients in all 27 EU member states, Iceland, Liechtenstein and Norway.

The exchange’s MOVE into regulated derivatives follows a series of similar actions by major crypto firms. U.S.-listed Coinbase acquired Deribit, a prominent trading platform. In Europe, other exchanges such as Bitstamp and Gemini, have also entered the regulated derivatives space. This trend shows the role of derivatives in crypto trading markets.

Kraken Secures MiFID II License

Earlier this year, Kraken acquired the Cypriot investment firm Greenfield Wealth which enabled it to secure a MiFID II license. The license allows the exchange to provide regulated derivatives products across the EU. The firm’s move into crypto derivatives also comes after its $1.5 billion acquisition of NinjaTrader, which further strengthened its derivatives trading infrastructure.

The company intends to become more visible and competitive in regulated markets. With derivatives, the company provides its clients with diverse investment opportunities. The exchange also plans to extend its services to neobanks and fintechs in Europe through its Embed crypto connectivity application.

Kraken seeks to meet the increased demand for derivatives across the world. Derivatives trading accounts for more than half of the exchange’s global trading volume. Overall, derivatives now account for nearly 75% of all crypto trading.

Since Kraken focuses on compliance, it has been able to handle the regulations in Europe. Thanks to its MiFID II license, the exchange adheres to the EU’s strict rules for financial standards. The exchange must meet all regulatory requirements to ensure users’ trust.

As Kraken expands it is able to meet the demands of both sophisticated crypto traders and institutions across the EEA.

Related Reading | Binance Pushes to Dismiss FTX’s $1.76B Clawback Suit Over Legal Flaws