The cryptocurrency exchange is expanding its services in Bermuda as the U.S. Securities and Exchange Commission (SEC) pursues it on home soil.
Cryptocurrency exchange Kraken has opened a derivatives trading platform in Bermuda, having received a license from the Bermuda Monetary Authority (BMA).
Bermuda is becoming an ideal place for regulated cryptocurrency activities. Kraken joins Coinbase International and HashKey Global in opening a presence on the island.
Large selection of transactions
The BMA said Payward Digital Solutions (Kraken’s legal name) was granted a Category F digital business license on July 7, enabling it to provide wallet services, operate as a digital asset derivatives exchange provider, and operate as a digital asset lending or digital asset repo transaction service provider, among other things.
Alexia Theodorou of Kraken Derivatives confirmed the license, telling Cointelegraph:
“The British Medical Association has demonstrated its commitment to promoting innovation. Its licensing process is rigorous and fair, protecting consumers while ensuring businesses operate with transparency and integrity: a standard Kraken fully meets.”
Kraken’s initial products on the new platform are perpetual and fixed-maturity futures, offering more than 200 contracts. Collateral options include fiat currencies and more than 30 cryptocurrencies.
Kraken said in its announcement that its expansion comes “at an opportune time.” Head of Trading Shannon Kurtas said: “Derivatives currently account for the majority of total cryptocurrency trading volume. […] We expect derivatives volumes and open interest to continue to grow.”
The exchange said the platform is available to customers in eligible jurisdictions, but did not specify which jurisdictions those were.
Some of Kraken’s futures trading options. Source: Kraken
Bermuda welcomes people to join, whereas some other jurisdictions make it difficult
Bermuda has been developing its cryptocurrency industry under the leadership of pro-cryptocurrency Premier E. David Burt, who took office in 2017. The Bermuda Digital Asset Business Act was passed in 2018.
Binance invested in a “global compliance base” in Bermuda, which created about 2018 new jobs in 40. The Bermuda Stock Exchange became home to the first Bitcoin exchange-traded fund in 2020.
Coinbase International launched retail perpetual futures trading under Bermuda Markets Authority (BMA) regulation in September 2023. Hong Kong-based HashKey Group opened HashKey Global in Bermuda in April and praised the regulatory environment provided by Bermuda.
Burt attended the Wyoming Blockchain Symposium in August, where he said, “Bermuda prides itself on being aligned with international standards.” Kraken was a co-host of the event. Burt said in the Kraken announcement:
“We are delighted to welcome Kraken to Bermuda and join our growing market of BMA-licensed digital asset businesses.”
Kraken reached a $3000 million settlement with the SEC and agreed to shut down its staking business in the country in February 2023. In November of the same year, the SEC accused Kraken of “operating a crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.”