Kraken is implementing the regulated trade of cryptographic derivatives in Europe, which complies with the European Union market directive in financial instruments (MIFID II).
Contracts of perpetual and fixed futures of expiration of cryptographic exchange will now be available for retail and institutional clients in the European economic area (EEE), the firm said on Tuesday.
The permission to exchange cryptographic derivatives was produced through an investment firm Chipriot called Greenfield Wealth, which Kraken acquired earlier this year, ensuring the exchange of a license from the Bag and Cyprus Values Commission (CYSEC).
The cryptographic derivative space has seen some significant movements lately, with great players such as Coinbase (Coin) that quotes in the United States (COIN) that acquires the main commercial platform of the commercial platform. In Europe, exchanges such as Bitstamp and Gemini are entering the fold, while the MIFID II license possessed by FTX EU has been acquired by the backpack.
Kraken also made an acquisition of Ninjatrader of $ 1.5 billion to boost the derivatives trade in the United States, as well as in his European license, Kraken acquired Crypto Institutesies, a platform of future cryptographic future regulated by the United Kingdom FCA, in 2019.
Kraken’s united approach means that contracts that European clients will have access to a relatively high volume, approximately between $ 1 billion and $ 2 billion per day, according to Shannon Kurtas, exchange manager in Kraken.
“This does not offer access to a new negotiation place or new contracts,” Kurts said in an interview. “These are existing contracts that have a volume of material that is quoted in them and, together with that, it comes established liquidity, better execution costs and fiduciary rails to obtain collaterals inside and out efficiently and economically.”
The recent introduction of Kraken’s cryptographic connectivity application means Neobanks and Fintechs in Europe can also offer derivatives, as well as spot, to its customers, Kurts said.
Collecting licenses in smaller and possibly more agile jurisdictions such as Cyprus and Malta has become a well -transmitted path for cryptographic companies with deep pockets.
“More agile is probably a fair characterization,” Kurts said. “In addition, there has been an established set of companies, particularly in the CFD space, which have traditionally offered retail access to FX and CFD derivatives, so there is a kind of link of individuals, companies and knowledge, if you wish, in the area for these products.”
