Crypto Facilities which is also known as Kraken Futures has announced that it has received approval to start derivatives trading services mostly to institutional investors.
On Monday, the firm announced that it had received a Multilateral Trading Facility (MTF) license from UK’s financial watchdog, Financial Conduct Authority (FCA). According to the firm, the license will enable institutional investors to easily trade on the futures platform. The license means that the firm will enhance its clientele to investors that could have been barred by the UK laws from using unapproved exchanges.
In a statement shared with Bitcoin Exchange Guide, Kraken's co-founder and CEO, Jesse Powell, explained that the firm has been pursuing the licensing as the firm is determined to ensure cryptocurrency is accessible to everyone. He stated,
“This particular license means that a sophisticated class of investors, limited by their own requirements to interface with a regulated venue such as an MTF, will now have access to crypto derivatives in Europe for the first time. More participants means more liquidity and a better experience for everyone.”
The firm also stated that the license makes Crypto Facilities the inaugural and the only approved derivatives company providing exposure to leveraged cryptos within the European Union.
Powell explained that sophisticated clients now have an opportunity to access crypto derivatives within the European Union which is a big step in the region.
Although the UK plans to exit the EU before the end of the year, the talks are not yet over and it remains unclear how regulatory issues will be handled after the exit. Majority of companies are hoping that passporting will be revoked.
The FCA had early this year warned against stern penalties on crypto derivatives platform BitMEX arguing that the company was luring UK customers even without its approval.
The Francisco-based Kraken bought out Crypto Facilities in February last year for an undisclosed amount which analysts estimated to be more than $100 million. At the moment the firm provides upto 50x leverage on various futures products such as Bitcoin, XRP, Bitcoin Cash, Ether and Litecoin.