Kraken expands derivatives trading to EU with Cypriot license acquisition

Crypto exchange Kraken is expanding its derivatives business across the EU through a regulated entity it acquired in Cyprus. The move marks the exchange’s latest European expansion, approximately a month and a half after launching its derivatives trading in the UK. 

Earlier this year, Kraken acquired a Markets in Financial Instruments Directive (MiFID) license through the purchase of an unnamed Cypriot investment firm. The license enables Kraken to offer derivatives products across the EU trading bloc.

“This milestone marks a significant step in our expansion strategy, allowing us to offer fully compliant and regulated derivatives products to advanced crypto traders across selected EU markets,” the exchange said at the time. 

Derivatives trading has become a core part of Kraken’s business, accounting for roughly half of its volume, Alexia Theodorou, Kraken’s head of derivatives, previously told The Block. Globally, crypto derivatives make up about 70% to 75% of total trading activity, a share that continues to grow, she said.

Kraken’s derivatives products will now be available to users across the European Economic Area, which includes all 27 EU member states as well as Iceland, Liechtenstein and Norway.

“Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions,” Head of Exchange at Kraken Shannon Kurtas said in a statement. “The launch of Kraken’s regulated derivatives in Europe, the largest offering of its kind, is well-timed to meet this growing demand.”

In May, Kraken introduced derivatives to the UK for qualified investors under the supervision of the Financial Conduct Authority. The UK represents Kraken’s second-largest market after the U.S.