Kraken Launches Bermuda-based Crypto Derivatives Venue 

Kraken has expanded its offshore with a new derivatives trading venue in Bermuda, licensed by the Bermuda Monetary Authority.

Kraken, a major global cryptocurrency exchange, has launched a new derivatives trading platform in Bermuda after securing a digital asset business license from the Bermuda Monetary Authority, according to a company press release.

The move comes as the U.S. Securities and Exchange Commission increases scrutiny on crypto exchanges, pushing firms like Kraken to seek offshore opportunities.

With the BMA license, Kraken can now offer its clients a range of crypto derivatives, including perpetual and fixed-maturity futures, using various types of collateral, such as fiat currencies and over 30 cryptocurrencies, the release said.

Derivatives are financial contracts that allow users to speculate on or hedge against the future value of assets. They have become a key feature in crypto trading and account for most of the trading volume globally. Offering derivatives helps clients manage risk efficiently while capitalizing on market opportunities.

Bermuda has become an attractive destination for crypto businesses due to its clear regulatory framework. Kraken joins other major players like Coinbase and HashKey Global, which have also received BMA licenses. 

Kraken’s new platform enables round-the-clock trading, reflecting the 24/7 nature of the crypto market, and aims to attract clients looking for a regulated venue with a broad range of derivatives products.