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Through a recent acquisition, Kraken is now allowed to offer derivative products across the European Union.
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US crypto exchange Kraken has acquired a Markets in Financial Instruments Directive (MiFID) license for the European Union. With the license, the exchange will be able to offer derivative products to advanced crypto traders throughout the EU.
According to a Feb. 3 blog post, Kraken secured the license through an acquisition of a Cypriot investment firm, recently approved by the Cyprus Securities and Exchange Commission.
Founded in 2011, Kraken has expanded into Europe over the past two years, securing licenses in Spain and Ireland, adding Kraken Custody to the UK market and acquiring a Dutch crypto broker in September 2024. The moves come as Europe’s $7-billion crypto market is heating up, with projections giving it a 15% growth rate until 2030.
Related: Kraken to delist Tether USDT, 4 other stablecoins in Europe
The EU has responded to the burgeoning crypto market by passing the Markets in Crypto-Assets (MiCA) regulation, targeting issues related to Anti-Money Laundering, token issuance and stablecoin-specific rules. Some global crypto entities like Crypto.com and OKX have already secured MiCA-specific licenses.
In its blog post covering the announcement, Kraken wrote that Europe is “one of the most active regions for crypto derivatives trading.” The exchange will be entering an EU market full of competitors offering or preparing to offer crypto derivatives products, including Bitstamp, Backpack, D2X and Coinbase.
Crypto derivatives are a suite of products typically aimed at advanced traders. They include financial products such as futures and options, which involve a contract between buyers and sellers that derives value from the price of the underlying crypto asset. Derivates are often seen as risky, especially in the crypto space, which has significant volatility.
Kraken recently made news for reintroducing its staking program to the US crypto market — two years after it withdrew the program due to a legal battle with the US Securities and Exchange Commission. According to a recent report, the exchange more than doubled its revenue in 2024 to $1.5 billion.
Related: Tether disappointed with ‘rushed actions’ on MiCA-driven USDT delisting in Europe
This article first appeared at Cointelegraph.com News
