The Bermuda Monetary Authority (BMA) gave Kraken, a major cryptocurrency exchange, a digital asset business license, which it then used to start a new futures trading platform in Bermuda. Kraken wants to broaden its business as U.S. regulators look more closely at it, which is why it is making this smart move.
Companies like Coinbase International and HashKey Global are moving their operations to Bermuda because it is becoming a better place to regulate cryptocurrencies. Kraken’s new platform will greatly improve the trade options it provides, as the BMA’s Class F Digital Business License lets it do many things, such as act as a market for digital asset derivatives and offer wallet services.
Alexia Theodorou from Kraken Derivatives said she was sure that the BMA would support innovation while also protecting consumers and making sure that businesses were open and honest. One of the first things the site offers are perpetual and fixed-maturity futures, which have more than 200 contracts backed by different types of collateral, such as standard currencies and more than 30 cryptocurrencies.
Kraken’s move into derivatives comes at a good time, since derivatives are becoming more important in the cryptocurrency market and make up a big part of trade traffic. Shannon Kurtas, Head of Trading at Kraken, talked about how derivatives are becoming more popular as a way to hedge, arbitrage, and make money.
Bermuda’s regulations, which are run by Premier E. David Burt, have made it appealing for crypto companies. The 2018 passing of the Bermuda Digital Asset Business Act made it possible for the digital banking industry to grow. The Premier was happy to see Kraken arrive and stressed that the island was committed to upholding high standards of compliance.
As Kraken moves forward, the new site claims to give clients in certain countries trading choices 24 hours a day, seven days a week. With this kind of freedom, Kraken wants to attract users who are looking for a safe place to trade a wide range of derivative goods.
