The FCA Have Just BANNED Crypto Derivatives ❗ What Does It Mean For You!? 🤔

Kraken Futures received a license from the UK regulator
CONTENT

  • Kraken became the first European marketplace to be licensed to provide crypto derivatives services.

  • Back in 2019, Kraken acquired UK-based Crypto Facilities to expand in Europe..

  • The company is also targeting the Russian market, but the lack of regulatory status complicates plans.

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In February 2019, the well-known American exchange acquired the British cryptocurrency derivatives trading platform Crypto Facilities.

Kraken Futures received a license from the UK regulator

Controlled by the cryptocurrency derivatives trading platform Kraken Futures, Crypto Facilities received a license from the Financial Conduct Authority (FCA).

CoinDesk reports this, citing a statement in Kraken.

Thus, Kraken Futures became the first licensed cryptocurrency platform that allows the use of leveraged cryptocurrencies in the UK and the European Union..

Through a license, the platform can also provide services to institutional investors.

Expansion through takeover

Kraken acquired UK marketplace Crypto Facilities in February 2019. Despite the fact that the official amount of the transaction is unknown, the media reported an amount in the region of $ 100 million.

Kraken Futures offers 50x leverage on their futures products for Bitcoin (BTC), ether (ETH), XRP (XRP), bitcoin cash (BCH), and litecoin (LTC).

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However, Kraken Futures does not intend to dwell exclusively on the European market. Previously, the company hired a representative in Russia to expand its activities on an international scale..

Heading east

Nevertheless, the appearance of a well-known American platform on the Russian market is unlikely in the near term, given the fact that cryptocurrency assets are still not spelled out at the legislative level..

Recall that on June 16, 2020, information appeared in the media that the draft law “On digital financial assets” is already ready for adoption..

According to Anatoly Aksakov, deputy of the State Duma of the Federal Assembly of the Russian Federation, in the new edition, the authors came to a consensus that united the interests of the state and entrepreneurs.

However, Aksakov admits that the prepared version of the bill is still “raw”. According to him, the bill presents different points of view that need to be discussed during the discussions..

What do you think? Will institutional traders use licensed crypto platforms? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

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