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Kraken Launches Crypto Derivatives Suite for Australian Wholesale Clients

Crypto

Business Honor
04 November, 2024

New offering enables institutional investors to navigate the crypto market amid regulatory changes.

U.S.-based cryptocurrency exchange Kraken has officially launched a new suite of crypto derivatives specifically designed for Australian wholesale clients. This development comes as part of Kraken’s commitment to the Australian market and aims to provide institutional investors with compliant trading options following recent legal challenges.

The new derivatives suite allows institutional clients to gain exposure to cryptocurrency price movements through futures derivatives, eliminating the need to hold the underlying assets directly. This innovative product is particularly appealing to Australian wholesale clients, who are increasingly seeking advanced trading strategies in a secure environment.

Kraken's product offers multicollateral support, which allows clients to use fiat, stablecoins, and cryptocurrencies as collaterals while using a safe custodial framework that encompasses over 200 tradable assets. Jonathon Miller, the General Manager for Australia, said, "Our new premium product meets our clients' trading needs and helps them advance in their crypto journey."

Net worth over or equal to USD $2.5m which is equivalent to Australian Dollar, and gross income more than or equal to AUD $250,000 or USD $164,000 for the last two consecutive years. Service to eligible clients is available to clients on Kraken through support page. Existing holders of an account on Kraken can determine whether to meet the eligibility criteria in Kraken Pro app.

This is the launch after Australia's Federal Court recently ruled against Kraken's local entity, Bit Trade Pty Ltd., which brought the current challenging regulatory atmosphere to a head for many cryptocurrency business ventures in Australia. According to Kraken, this has brought growing concern on the lack of clarity from regulators, and bespoke crypto regulation is urgently needed if there is to be an enduring and stable operating environment.

In August, the Federal Court ruled that the firm Bit Trade breached the Corporations Act regarding the lack of legal adherence to margin trading products and others. The ruling means that crypto businesses in the country are under amorphous regulation.

Despite these challenges, the cryptocurrency market in Australia has experienced significant growth, with a reported ownership rate of 17%, surpassing the global average of 15%. As Kraken continues to adapt to the evolving landscape, its new derivatives offering aims to empower institutional investors in navigating the complexities of the crypto market.