Kraken launches regulated derivatives trading in Europe: A breakthrough!

Kraken launches regulated derivatives trading in Europe: A breakthrough!

On May 20, 2025, Kraken announced the launch of regulated derivatives trading on their platform. The introduction takes place within the framework of the EU Regulation on Markets in Financial Instruments (MiFID II). Crypto futures contracts with a fixed term are offered for both private and institutional customers in the European Economic Area (EEA). Shannon Kurtas, Head of Exchange at Kraken, highlights that the growth of digital asset trading in Europe shows a clear trend. Customers are increasingly demanding comprehensive offerings within a regulated framework.

The ability to seamlessly trade futures as part of a complete product range is highlighted as a key benefit. The derivatives are also intended to improve capital efficiency, access to liquidity and reliability. The derivatives will be offered through MiFID II-regulated Cyprus company Payward Europe Digital Solutions, which Kraken transferred following its acquisition of a licensed Cypriot investment firm in February 2025.

Strategic acquisitions and market position

As part of this expansion, Kraken acquired the futures trading platform NinjaTrader in early May. NinjaTrader's first-quarter revenue rose 19% year-over-year to $471.7 million. This acquisition is part of Krakan’s strategic focus on strengthening its market position in Europe. The regulator Cyprus Securities and Exchange Commission (CySEC) approved the acquisition of the investment firm through which Kraken received the MiFID license. This license allows Kraken to offer regulated derivatives products to advanced crypto traders in select EU markets and demonstrates the importance of the European market to the company.

Additionally, Coinbase CEO Brian Armstrong revealed that he is looking for further merger and acquisition opportunities following the acquisition of Deribit. In this context, Gemini has also received regulatory approval to expand crypto derivatives trading in Europe. The company plans to offer regulated derivatives across the EU and EEA.

A promising market

Europe is widely regarded as one of the most active markets for crypto derivatives trading and represents a key growth market for Kraken. With the new offerings, Kraken aims to provide advanced traders with access to a wide range of assets in a capital-efficient and flexible manner. Shannon Kurtas, Co-CEO of Kraken Pro & Exchange, reiterates the priority of this market for the company.

Kraken is also committed to setting security, innovation and compliance standards in the industry. It should be noted that some crypto products and markets are regulated while others are not, which may result in different registration requirements. Investors should also be aware of the risks associated with the volatile nature of the crypto markets, as well as possible tax liabilities on any income or appreciation in the value of crypto assets.

For more information on Krakan's regulatory developments and expansion strategies, readers can visit the detailed reports Cointelegraph and Kraken Blog read up.