Kraken Bets Cyprus Licence into Action: Rolls Out Crypto Derivatives in Europe

As reported on Tuesday, Kraken officially went live with its crypto derivatives products for users across Europe. The new products are being introduced under a MiFID II Cyprus-based licence, which the U.S.-based crypto exchange acquired earlier this year.

Kraken Begins Operations via Cyprus

Thanks to its Markets in Financial Instruments Directive (MiFID II) license, Kraken is now able to passport its services throughout the European Economic Area (EEA). This means that the exchange is now able to provide regulated crypto derivatives, such as perpetual and fixed maturity contracts, to a wide range of clients across Europe.

As earlier covered by Finance Magnates, Kraken obtained this license when it bought a Cyprus-based firm previously linked to contracts for differences (CFDs) broker Pacific Union Group, which is currently branded as PU Prime outside of Cyprus.

Kraken's Strategy for Expansion

"Europe is one of the most rapidly expanding markets for trading and investment in digital assets, with some of the most advanced and exigent clients and institutions," said Shannon Kurtas, Kraken Head of Exchange.

She also added that the launch of crypto derivatives will bring better "capital efficiency, access to liquidity, reliability, and sophisticated strategies and position management" to European traders.

On the Road to IPO

Started by Jesse Powell in 2011, Kraken is now one of the most enduring and successful crypto exchanges in existence. Based in San Francisco, the firm intends to IPO by late 2025 or early 2026. Kraken plans to raise as much as $1 billion in debt before its IPO, according to reports.

Some of the other players such as eToro, which is also providing crypto trading services, have already listed in the public domain on Nasdaq at a premium. Robinhood, another Nasdaq-listed broker, continues to reap a huge percentage of revenue from crypto, albeit reportedly trying to diversify amid oscillating trading volumes.

If Kraken follows through with its IPO intentions, it would be only the second exchange to list exclusively in crypto, after Coinbase, which just joined the S&P 500. Kraken also indicated diversification into mainstream asset classes by acquiring retail futures trading platform NinjaTrader for $1.5 billion.

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