Kraken’s 24/7 Derivatives Platform in Bermuda Obtains Regulatory Approval

Kraken has announced the launch of its new global
derivatives venue in Bermuda. This initiative aims to provide clients with a
licensed trading platform in a recognized jurisdiction.

Bermuda Authority Approves Kraken Venue

Kraken’s new venue allows clients to trade derivatives
around the clock, aligning with the 24/7 nature of the cryptocurrency market. According
to the press release, the exchange operates under the regulatory oversight of
the Bermuda Monetary Authority, which is recognized for its strong framework in
cryptocurrency regulation.

With this launch, Kraken expands its offerings to include
over 200 different derivative contracts. The timing is important, as many
clients seek to use derivatives to better manage their digital asset exposures.

“Derivatives now account for the majority of total crypto
trading volumes. Clients use derivatives for capital-efficient hedging,
cross-margined exposure, as well as yield and arbitrage opportunities, among
others,” said Shannon Kurtas, Head of Trading at Kraken.

“Providing our clients with the ability to trade derivatives
securely and efficiently means they can take advantage of these diverse
opportunities more easily as we anticipate continued growth in derivative
volumes and open interest.”

Flexible Futures Trading Available

Initially, Kraken will offer perpetual and fixed maturity
futures. These will be available against various collateral options, including
fiat currencies and more than thirty cryptocurrencies. This variety aims to
give clients greater flexibility in managing their positions and associated
risks.

Access to the derivatives venue is provided to clients in
eligible jurisdictions. They can connect through Kraken’s application
programming interfaces (APIs) and its web and mobile platforms.

Bermuda’s Premier, E. David Burt, remarked: “Since 2017, we
set out on a mission to provide regulatory clarity for digital asset businesses
which uphold our jurisdiction’s standards in compliance and risk management. We
are happy to see global businesses like Kraken recognizing Bermuda as a premier
jurisdiction for digital finance.”

This article was written by Tareq Sikder at www.financemagnates.com.