Key Points
- Kraken introduces crypto derivatives for Australian wholesale clients.
- Over 200 tradable assets and multi-collateral support are offered.
- High-security custodial solutions and 24/7 support are included.
- Regulatory challenges persist amid ambitious service expansions.
Kraken Australia is making waves in the financial world with the launch of a comprehensive suite of crypto derivatives aimed at wholesale clients. Leveraging its position as a global leader in cryptocurrency services, Kraken is offering Australian investors access to over 200 tradable assets.
This strategic move aligns with Kraken’s commitment to staying at the forefront of market demand and providing flexible trading options backed by world-class security measures.
From the onset, Kraken Australia emphasized its multi-collateral support, which includes fiat currencies, stablecoins, and digital assets. This flexibility allows wholesale clients to better manage risk and exposure, without needing to hold the underlying cryptocurrency.
With custodial solutions that promise robust security and around-the-clock support, Kraken Australia aims to redefine the trading experience for its clientele.
Jonathon Miller, Kraken’s General Manager for Australia and the Rest of the World, commented on the new offering. “Australian wholesale clients have long been seeking more sophisticated trading opportunities with a licensed broker.
Kraken Australia’s new derivatives suite delivers on this demand while upholding our stringent security standards,” he said. Miller also reiterated that Australia remains a crucial market for Kraken and affirmed the company’s dedication to regulatory compliance as well as to innovation in crypto product offerings.
Kraken Unveils Crypto Derivatives for Australian Wholesale Clients
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The Key Features of Kraken Australia’s New Offering
Kraken Australia’s crypto derivatives suite introduces several key features tailored for institutional and wholesale clients. Here are some highlights:
Multi-Collateral Support: Clients can utilize fiat currencies, stablecoins, or cryptocurrencies as collateral. This ensures flexibility for various trading strategies and risk management approaches.
Extensive Asset Coverage: With over 200 tradable crypto assets, Kraken allows clients to diversify and capitalize on market movements without owning the underlying assets.
24/7 Customer Support: Dedicated around-the-clock support ensures that clients have assistance whenever they need it, reflecting Kraken’s commitment to a premium trading experience.
High-Security Custodial Solutions: The platform employs industry-leading security practices to safeguard client assets. Custodial services ensure assets remain secure yet accessible at all times.
Kraken Custody: Expanded Services for Institutional Clients
In addition to its derivatives offering, Kraken Custody has expanded to serve institutional clients in Australia and the UK. Kraken Custody is designed to securely manage and store major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC). This service is a testament to Kraken’s ongoing investment in the infrastructure needed to support large-scale investors.
Kraken Financial, a US state-chartered bank, provides this qualified custody solution. It ensures that client funds remain segregated from the exchange, offering an added layer of safety. The introduction of Kraken Custody in Australia and the UK marks the first major international expansion since the custodian service’s inception earlier this year.
Regulatory Challenges: Kraken Australia vs. ASIC
Despite Kraken Australia’s ambitious plans, regulatory hurdles have been a concern. In August, the Federal Court ruled that Bit Trade Pty Ltd, Kraken’s Australian entity, breached local financial regulations.
The case revolved around Kraken’s margin trading product, which had been offered to Australian clients without a mandatory target market determination since October 2021.
The Australian Securities and Investments Commission (ASIC) argued that Kraken’s margin extensions, allowing borrowing against fiat or crypto, functioned as a credit facility without appropriate disclosures.
Justice Nicholas ruled in favor of ASIC on part of the case, identifying that margin extensions in fiat currency did indeed represent deferred debt, classifying them as credit facilities.
This partial ruling highlights the importance of compliance in Australia’s financial sector. The outcome indicates that Kraken Australia must fine-tune its offerings to meet legal requirements fully, while also setting an example for how crypto firms should navigate regulatory complexities.
What’s Next for Kraken Australia?
Kraken Australia is forging ahead despite regulatory setbacks. The company’s expansion into crypto derivatives and secure custody solutions signifies a broader vision to become the premier provider of institutional crypto services in the country.
As Kraken Australia continues to roll out new products, the industry will be watching how it balances innovation with regulatory adherence.
With these developments, Kraken Australia is not just introducing new products but also shaping the future of cryptocurrency trading in Australia. Wholesale clients now have the tools to engage in advanced trading strategies, provided they meet the eligibility criteria.
