coinspress.com
Kraken, a prominent cryptocurrency exchange based in the United States, has recently unveiled a new service aimed at solidifying its foothold in Australia.
Launched on November 3, 2024, this derivatives-based product is specifically designed for wholesale crypto investors.
The exchange expressed enthusiasm about the introduction of this service, highlighting that institutional traders in Australia can now utilize a range of crypto derivatives through a locally licensed broker. This offering allows traders to effectively manage their crypto trading risks without needing to hold the actual assets.
Jonathan Miller, Kraken’s General Manager for Australia and the Rest of the World, emphasized the company’s proactive approach to market demands. He noted that Australian wholesale clients are looking for secure methods to implement sophisticated crypto trading strategies. According to Miller, the new product caters to these requirements and enhances investment opportunities for users, stating, “With over 200 tradable assets, we are providing multi-collateral support—covering fiat, stablecoins, and cryptocurrencies—all safeguarded by one of the industry’s most reliable custodial solutions.”
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Miller also reiterated the significance of Australia within Kraken’s global framework and cited the exchange’s licensed broker as a testament to its commitment to regulatory compliance. He explained that this new derivatives offering is part of Kraken’s strategy to tap into institutional interest in digital assets.
This product launch follows a recent legal setback for Kraken’s local affiliate, Bit Trade Pty Ltd, which lost a court case against the Australian Securities and Investments Commission (ASIC). The court found that Bit Trade’s margin services did not meet ASIC’s requirements, particularly regarding target market determinations, a crucial element under Australia’s Corporations Act. Despite the disappointment from this ruling, Kraken reaffirmed its dedication to adhering to regulations, positioning itself to distinguish itself from competitors in the derivatives space moving forward.