Prominent crypto exchange Kraken will roll out derivative products for its clients in the European continent after recent licensing.
The European crypto market is expanding rapidly, with the new Markets in Crypto Assets (MiCA) regulation attracting digital asset firms. Leading crypto exchange Kraken has become the latest to enter Europe, particularly targeting the derivatives market.
In a Tuesday announcement, Kraken disclosed that it is rolling out regulated derivative contracts for European users. The firm noted that the latest venture aligns with its expansion strategy, which aims to offer more crypto-related products for its clients in the region.
Kraken Debuts CFD Products
The product aims to reach retail and institutional customers in the European Economic Area (EEA), the Tuesday release emphasized. Notably, this became possible after Kraken recently secured a Market in Financial Instrument Derivative (MiFID) license in Europe.
The prominent exchange secured the license by acquiring Greenfield Wealth, a Cyprus-based investment firm, earlier in the year. With the acquisition, Kraken received a MiFID-approved license from the Cyprus Securities and Exchange Commission (CySEC).
Remarkably, the authorization allows Kraken to offer regulated CFD products to European users. Specifically, the firm can now provide regulated derivative contracts to all 27 European Union countries in addition to Iceland, Norway, and Liechtenstein.
Meanwhile, this enhances the exchange’s derivative presence, which constitutes a large chunk of its business. Specifically, derivative trading accounts for nearly 50% of its volume and between 70% and 75% of its total trading activities.
Recall that Kraken recently entered the UK’s derivatives market. It resumed offering qualified retail and institutional clients FCA-regulated CFD products in May, expanding its grasp of the nation, which is its second-largest market after the United States.
European Derivative Market Heating Up
Kraken’s European venture is the latest move by prominent digital asset firms to leverage the rapidly emerging crypto market in the bloc. Following a clear regulatory framework, the European market has become attractive for global presence expansion.
For context, Bitstamp and Gemini have acquired MiFID licensing in Europe, offering users a wider range of derivative products in the region. The latter received its license from the Slovenian top market regulator in October 2024, while the former got the permit from Malta’s MFSA earlier this month.
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