Kraken opens in the EU for derivatives trading using cryptocurrency as collateral

According to The Block, Kraken's derivatives head Alexia Theodorou stated that the cryptocurrency trading platform will now allow traders to use cryptocurrencies as collateral on its MiFID-regulated EU derivatives platform. This move will further enhance Kraken's business layout in the EU.

The trading platform launched derivatives trading services across the EU in May this year. Theodorou mentioned that this update also helps Kraken solidify its position as "the largest perpetual contract trading platform in Europe." She added during the call, "When we obtained MiFID regulatory approval in Europe, there was no MiCA in effect, and no regulated European crypto custodians were operational. Therefore, we reached an agreement with regulators that at that stage we could not offer cryptocurrency collateral services to clients under the European regulatory framework."