Kraken, a cryptocurrency exchange based in the United States, has launched a new suite of crypto derivatives specifically designed for its Australian wholesale clients. This move comes in response to recent legal challenges faced by the company in the country and demonstrates Kraken’s commitment to the Australian market. The exchange aims to provide secure and compliant services for institutional investors amidst a changing regulatory landscape.
The newly introduced derivatives offering allows institutional clients to participate in cryptocurrency price movements through futures derivatives without the need to hold the actual assets. Moreover, the service includes multi-collateral support, enabling clients to use collateral in fiat, stablecoins, and cryptocurrencies. The highly secure custodial system covers over 200 tradable assets.
Kraken’s decision to launch this product follows a ruling by Australia’s Federal Court in August, which went against Kraken’s domestic entity, Bit Trade Pty Ltd. In response, Kraken has developed this premium product to meet the advanced trading needs of Australian wholesale clients and facilitate their crypto journey.
To be eligible for Kraken’s derivatives products, individuals must have net assets exceeding AUD $2.5 million and a gross annual income above AUD $250,000 for the past two years. Interested clients can explore the new service on Kraken’s support page, while existing clients can confirm their eligibility through the Kraken Pro app.
Kraken has also expressed concerns about the lack of regulatory clarity in Australia. The exchange believes that the recent court ruling highlights the broader issue of regulatory ambiguity in the country’s approach to cryptocurrency. Kraken emphasizes the urgent need for bespoke crypto regulation to provide clarity to Australian crypto businesses and investors.
Last year, the Australian Securities and Investments Commission (ASIC) filed civil proceedings against Bit Trade, a subsidiary of Kraken’s parent company, Payward Incorporated. ASIC accused Bit Trade of failing to meet legal requirements, such as conducting a target market determination, before offering its margin trading product to customers. The Federal Court ruled against Bit Trade in late August, stating that the platform had breached the country’s Corporations Act.
Despite the legal challenges, the crypto market in Australia has experienced significant growth in terms of ownership and adoption. The country’s cryptoownership rate stands at 17%, which is higher than the global average of 15%.
