Kraken launches Bermuda-based crypto derivatives venue 

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

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

The move comes as the U.S. Securities and Exchange Commission has stepped up its scrutiny of crypto exchanges, pushing firms like Kraken to seek opportunities overseas.

The statement noted that with the BMA license, Kraken can now offer its customers a range of crypto derivatives, including perpetual and fixed-maturity futures, using a variety of collateral types such as fiat currencies and more than 30 cryptocurrencies.

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

Kraken in Bermuda

Bermuda has become an attractive destination for crypto businesses due to its clear regulatory framework. Kraken joins other major players such as Coinbase and HashKey Global in receiving a BMA license.

Kraken’s new platform reflects the 24/7 nature of the crypto market, allowing 24-hour trading and aims to attract customers looking for a regulated venue with a wide range of derivatives products.