Kraken has launched a licensed broker service in Australia aimed at wholesale clients, marking its entry into the country’s crypto derivatives market. The new service, which became available on November 3, allows institutional and large-scale investors to trade crypto-based derivatives without requiring direct ownership of digital assets. Clients can apply for the service via the Kraken Pro app, which indicates the platform’s commitment to regulatory compliance while expanding its offerings.
The derivatives available through Kraken’s Australian broker include various options with multi-collateral support, enabling clients to manage risks effectively. The service supports collateral in fiat, stablecoins, and other cryptocurrencies, equipping traders with enhanced strategies for asset security. However, Kraken has cautioned potential investors about the inherent risks of trading in derivatives, which can result in losses exceeding initial investments.
This expansion highlights Kraken’s strategy to cater to the growing demand for advanced trading options among institutional clients in Australia. Jonathan Miller, Kraken’s general manager for Australia, expressed that the country has been pivotal in the exchange’s global operations and emphasized the importance of providing a licensed trading environment for advanced strategies.
As the cryptocurrency landscape evolves, Kraken’s move reflects a broader trend of exchanges aligning with local regulations while aiming to attract institutional liquidity. The development indicates a shift towards a more regulated environment for crypto trading, emphasizing the need for compliance and security in the rapidly changing market.
