Kraken’s FCA-Regulated Platform Now Offers Crypto Derivatives in the UK

Kraken, one of the most well-known crypto exchanges, has officially expanded its crypto derivatives services to professional clients in the UK. This move is made possible through its Multilateral Trading Facility (MTF), which operates under the Financial Conduct Authority’s (FCA) regulatory framework.

With the crypto perpetual contracts market experiencing consistent growth, this Kraken derivatives trading expansion in the UK serves an in-demand portion of the industry while complying with the region’s strict regulatory standards.

Should you trade derivatives on Kraken in the UK?

Kraken’s new UK crypto derivatives release reflects the platform’s growing commitment to being one of the best crypto exchanges while maintaining adherence to regulatory bodies. Made possible through its FCA-regulated subsidiary, Crypto Facilities, the Kraken trading platform provides advanced tools and a compliant environment for professional investors.

Understanding derivatives in the crypto market

Crypto derivatives are financial contracts that draw their value from cryptocurrencies like Bitcoin and Ethereum. Unlike direct spot markets, derivatives enable traders to speculate on price movements and use leverage to amplify potential returns. 

Currently, derivatives account for approximately 70-75% of all crypto trading activity, reflecting their dominance in the digital asset economy. According to a report from EY, the crypto derivatives market had a trading volume of $1.3 trillion in September 2023.

What to expect from Kraken’s crypto derivatives in the UK

Karken’s derivatives trading in the UK is offered through its FCA-authorized MTF, ensuring high regulatory compliance. Additionally, trades are facilitated by Kraken’s Bermuda-based futures broker.

One of the core features of Kraken’s futures trading platform is its multi-collateral perpetual contracts. This enables users to fund positions using various cryptocurrencies. As a result, Kraken professional clients unlock greater capital efficiency, which can be especially helpful for institutional traders with highly diversified portfolios.

Kraken’s strategy: Institutional growth and global reach

Kraken’s derivatives trading launch into the UK market is part of a larger institutional movement. In addition to following FCA crypto regulations, the leading exchange recently acquired a MiFID II-regulated entity in Cyprus, marking its expansion into European markets.

Furthermore, Kraken’s acquisition of the US-based NinJaTrader has helped it diversify its offerings. These initiatives reflect Kraken’s long-term goal to establish itself as a global hub for regulated crypto services. 

Why Kraken stands out in the crypto derivatives space

Unlike other crypto leverage trading platforms like Binance and Bybit, Kraken differentiates itself through its firm commitment to regulatory compliance. Built for retail and institutional investors, the exchange operates in a professional-grade infrastructure with various crypto facilities and revolutionary products like multi-collateral futures.

Kraken’s growth and position as a Tier 1 centralized exchange have been accelerated by smart acquisitions, which have enhanced its regulatory capabilities and global reach. All of these factors give Kraken a unique advantage in the constantly shifting digital asset market.

FCA rules and Kraken’s regulated trading model

In the UK, only users and entities classified under “Professional Clients” based on the FCA’s guidelines can access crypto derivatives trading. Clients must meet specific criteria, involving the following:

• Trading volume
• Experience in derivatives markets
• Financial capability

Kraken follows these strict criteria to maintain its position as a highly regulated and established crypto trading platform.

How Kraken’s UK launch impacts professional traders

For eligible UK traders, the Kraken derivatives trading UK launch unlocks regulated, institutional-level derivatives markets. Professional traders benefit from advanced trading tools and deeper liquidity while keeping with the UK’s financial standards.

While retail access to crypto derivatives remains restricted under FCA regulations, future regulatory initiatives may involve broader participation. In the meantime, Kraken professional clients can take advantage of this opportunity.

Getting started with Kraken’s FCA-regulated derivatives

If you think you qualify for Kraken futures trading, follow these steps to gain access:

1. Check FCA eligibility: Ensure you meet FCA’s definition of a Professional Client.
2. Create a Kraken account: Sign up and verify your identity through the platform, then start the Professional Client onboarding process.
3. Access the MTF: Submit the necessary documentation and requirements to confirm your Professional Client status.
4. Start trading crypto futures and derivatives: Once approved, you may begin trading futures and perpetual contracts directly through the Kraken MTF platform.

Kraken’s future goals

With $1.5 billion in revenue in 2024 and growing interest in release stock and ETF trading in the U.S., Kraken’s vision for the future is full of opportunities. Some analysts believe an IPO is on the horizon, increasing investor confidence.

Nonetheless, Kraken’s long-term goal remains to be a platform that links traditional finance and digital assets, all within a transparent and well-regulated environment.

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