U.S.-based cryptocurrency exchange Kraken has launched a new suite of crypto derivatives tailored for Australia’s wholesale clients, marking a significant step forward in offering regulated, institutional-grade services in the country. The move follows a recent legal setback but reinforces Kraken’s commitment to the Australian market by providing a compliant and secure platform for institutional investors, as stated in the exchange’s latest blog post.
Advanced Derivatives Product with Multi-Collateral Support
Kraken’s new derivatives suite allows clients to gain exposure to cryptocurrency price movements without holding the actual assets, offering multi-collateral support across fiat, stablecoins, and cryptocurrencies. This secure custodial system covers over 200 tradable assets, designed to meet the needs of institutional clients with advanced trading requirements.
Jonathon Miller, Kraken’s General Manager for Australia, remarked, “Australian wholesale clients are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken’s high security standards. Our new premium product meets our clients’ trading needs and helps them to advance in their crypto journey.”
To qualify for Kraken’s derivatives products, clients must meet eligibility requirements, including a minimum net asset threshold of AUD $2.5 million (USD $1.64 million) or an annual income above AUD $250,000 (USD $164,000) over the past two years. Eligible clients can now access these services via Kraken’s support page or the Kraken Pro app.
Concerns Over Regulatory Ambiguity
Following a recent Federal Court ruling that deemed Kraken’s fiat margin trading product non-compliant, Kraken has raised concerns over Australia’s lack of regulatory clarity. The exchange emphasized the need for comprehensive cryptocurrency regulation, highlighting how the current legal environment continues to pose challenges for crypto businesses and investors alike.
In a related legal matter, Kraken’s domestic entity, Bit Trade Pty Ltd, faced accusations from the Australian Securities and Investments Commission (ASIC) for allegedly failing to meet the country’s Corporations Act requirements. The Federal Court ruled in August against Bit Trade, citing a breach of compliance regarding customer offerings since October 2021.
Despite these challenges, Australia’s crypto market has witnessed robust growth, with ownership rates of 17%, surpassing the global average of 15%.
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