Kraken launches Bermuda-based crypto derivatives venue

Kraken has announced the launch of a new derivatives trading platform in Bermuda, following the acquisition of a digital asset business license from the Bermuda Monetary Authority.

As a prominent global cryptocurrency exchange, Kraken’s expansion comes in response to heightened scrutiny from the U.S. Securities and Exchange Commission, prompting many firms to explore offshore opportunities.

With the new BMA license, Kraken is set to offer a variety of crypto derivatives, including perpetual and fixed-maturity futures, allowing clients to use multiple forms of collateral such as fiat currencies and over 30 different cryptocurrencies.

Derivatives are financial instruments that enable users to speculate on or hedge against the future value of assets, and they play a crucial role in global crypto trading, comprising a significant portion of overall trading volume. By providing these products, Kraken aims to help clients manage risks effectively while seizing market opportunities.

Bermuda has emerged as an appealing destination for crypto enterprises due to its well-defined regulatory environment. Kraken joins other significant players like Coinbase and HashKey Global, which have also secured licenses from the BMA.

The new platform offers 24/7 trading capabilities, aligning with the continuous nature of the crypto market, and is designed to attract clients seeking a regulated venue with a diverse range of derivatives products.