Kraken, a well-known cryptocurrency exchange, has recently expanded its operations to Bermuda by launching a new derivatives trading platform. This move was made possible after Kraken obtained a digital asset business license from the Bermuda Monetary Authority, as stated in a press release by the company.
The decision to establish a derivatives trading venue in Bermuda comes at a time when regulatory scrutiny on crypto exchanges is increasing, particularly in the United States. By exploring offshore opportunities, Kraken aims to navigate these regulatory challenges effectively.
With the BMA license in hand, Kraken is now able to offer its clients a diverse array of crypto derivatives, including perpetual and fixed-maturity futures. These derivatives can be traded using a variety of collateral options, such as fiat currencies and more than 30 different cryptocurrencies, according to the press release.
Derivatives play a crucial role in the world of crypto trading, allowing users to either speculate on or hedge against the future value of assets. Globally, derivatives account for a significant portion of the trading volume in the crypto market. By providing derivatives trading options, Kraken empowers its clients to manage risk efficiently and capitalize on market opportunities.
Bermuda has emerged as an attractive location for cryptocurrency businesses due to its well-defined regulatory framework. Kraken now joins the ranks of other major industry players like Coinbase and HashKey Global, who have also obtained BMA licenses to operate in the region.
Kraken’s new derivatives platform offers round-the-clock trading capabilities, aligning with the 24/7 nature of the cryptocurrency market. The platform is designed to cater to clients seeking a regulated trading venue that offers a wide range of derivatives products.
In conclusion, Kraken’s expansion to Bermuda signifies the exchange’s commitment to providing innovative trading solutions while adhering to regulatory requirements. By offering a diverse selection of crypto derivatives in a regulated environment, Kraken aims to meet the evolving needs of its clients and enhance their trading experience in the fast-paced world of cryptocurrencies.
