U.S.-basedcryptoexchangeKrakenhaslaunchedanewsuiteofcryptoderivativesproductsforAustralianwholesaleclients,aimedataligningwithregulatorystandardsfollowingarecentlegalchallengeinthecountry.
Kraken’slicensedbrokerofferingwillallowinstitutionalclientstogainexposuretocryptopricemovementsthroughderivativeswithoutdirectlyholdingtheunderlyingassets,thecompanysaidSunday.
Theserviceincludesmulti-collateralsupport—fiat,stablecoins,andcrypto—heldwithinwhatKrakendescribesas“oneofthemostrobustcustodialsolutions,”availableforover200tradableassets.
KrakensaiditremainscommittedtomaintainingafootholdintheAustralianmarketwhilecateringtoinstitutionaldemandamidanevolvingregulatorylandscape.
ItslaunchcomesmonthsafterKraken’sdomesticoperator,BitTradePtyLtd,lostacourtcasewithAustralia’sfinancialregulator,theAustralianSecuritiesandInvestmentsCommission.
InAugust,Australia’sFederalCourtruledthatBitTradefailedtomeettherequiredstandardsforitsmargintradingproductbynotprovidingatargetmarketdetermination,arequirementunderAustralia’sCorporationsAct.
Therulingunderscoredtheneedforcryptoproductstomeetstringentcompliancemeasurestoavoidpotentialconsumerrisks.
Now,asthecompanyattemptstoshakeoffthatlegalhurdle,itsnextchallengeliesindifferentiatingitselffromrivalexchangesofferingsimilarproducts,includingSwyftxandOKX.
Inanycase,Kraken’sGeneralManagerforAustralia,JonathonMiller,saidthederivativesbrokerofferingisaresponsetoincreasingdemandfrominstitutionalclientsforcompliant,high-securitytradingoptions.
Toqualify,anindividual\'snetassetsmustexceed$2.5million(US$1.64million)withagrossannualincomeexceeding$250,000(US$164,000)forthelasttwofinancialyears.
“AustralianwholesaleclientsarelookingfortheabilitytoexecuteadvancedtradingstrategiesusingalicensedbrokerbackedbyKraken’shigh-securitystandards,”Millersaidinastatement.
WholesaleclientscanbeginexploringthenewofferingviaKraken’ssupportpage,andexistingclientscanconfirmtheireligibilitythroughtheKrakenProapp.
decrypt.co