Kraken Launches Regulated Crypto Derivatives Across EU After Securing Cypriot License
Kraken, one of the world’s leading cryptocurrency exchanges, is strengthening its European presence by launching regulated derivatives trading across the EU, following the acquisition of a licensed investment firm in Cyprus.
The expansion comes just weeks after Kraken introduced its derivatives offering in the UK, marking a strategic push into key international markets. By securing a Markets in Financial Instruments Directive (MiFID) license through its Cyprus-based acquisition, Kraken now has the regulatory clearance to offer crypto derivatives products across the entire European Economic Area (EEA), which includes all 27 EU member states along with Iceland, Liechtenstein, and Norway.
“This milestone marks a significant step in our expansion strategy,” the company said in a statement. “It allows us to offer fully compliant and regulated derivatives products to advanced crypto traders across selected EU markets.”
Derivatives trading has become an increasingly important part of Kraken’s global business. According to Kraken’s Head of Derivatives, Alexia Theodorou, these products currently represent around half of the exchange’s overall trading volume. Industry-wide, crypto derivatives account for approximately 70% to 75% of all trading activity, and that share continues to grow.
Shannon Kurtas, Head of Exchange at Kraken, emphasized the region’s potential: “Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions. The launch of Kraken’s regulated derivatives in Europe, the largest offering of its kind, is well-timed to meet this growing demand.”
Kraken’s latest move aligns with broader trends in the digital asset industry, where exchanges are racing to secure regulatory approval and cater to institutional clients. In May, Kraken rolled out derivatives trading in the UK for qualified investors under the oversight of the Financial Conduct Authority, reflecting the exchange’s focus on compliance and market maturity.