Kraken, the U.S.-based cryptocurrency exchange, has introduced a new crypto derivatives product to strengthen its position in Australia’s financial market.
Launched on November 3, 2024, the latest offering is tailored specifically for wholesale crypto investors in Australia. According to Kraken, the product will allow institutional traders to manage their trading risks through derivatives without holding the underlying digital assets.
Comprehensive Crypto derivatives access for Australian institutions
Kraken’s new service provides Australia-based institutional clients access to a broad range of crypto derivatives. This initiative, facilitated by a licensed local broker, grants Australian wholesale clients the flexibility to execute sophisticated trading strategies. By using derivatives rather than directly holding assets, investors can navigate the volatility of crypto markets more effectively. Kraken’s General Manager for Australia and the Rest of the World, Jonathan Miller, emphasized that the product was developed to meet the demands of institutional clients seeking secure and advanced trading options.
“With over 200 tradable assets, we are offering multi-collateral support, including fiat, stablecoins, and crypto, within one of the most secure custodial solutions available,” Miller stated. He highlighted Kraken’s commitment to equipping Australian clients with diverse options to support their investment journeys.
Kraken reaffirms commitment to regulatory compliance
Kraken has prioritized regulatory compliance in Australia as part of its global strategy. The exchange’s licensed broker offering underscores its dedication to aligning with local regulations. Miller reiterated that the launch of the crypto derivatives service is one way Kraken aims to unlock institutional demand for digital assets while adhering to regulatory standards. This regulatory focus is particularly relevant following a recent legal setback involving Kraken’s Australian affiliate, Bit Trade Pty Ltd.
Bit Trade Pty Ltd loses court case to Australian regulator
Kraken’s new product launch follows a court ruling against its Australian affiliate, Bit Trade Pty Ltd. The Australian Securities and Investments Commission (ASIC) challenged Bit Trade’s margin service, claiming it failed to meet regulatory standards. The court found that Bit Trade had not provided a target market determination, a requirement under Australia’s Corporations Act for financial products.
Despite expressing disappointment with the judgment, Kraken reaffirmed its commitment to operating within the country’s regulatory framework. With this legal matter concluded Kraken is now focused on differentiating its offerings from competitors with similar services in the Australian market.
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