Kraken, a U.S.-based cryptocurrency exchange, has launched a range of crypto derivatives products for Australian wholesale clients. These products help clients gain exposure to crypto price movements without holding the underlying assets. The service includes multi-collateral support for fiat, stablecoins, and crypto assets.
It is available to institutional clients through Kraken’s licensed broker offering, which has one of the most robust custodial solutions for over 200 tradable assets. This move comes after Kraken’s domestic operator, Bit Trade Pty Ltd, lost a court case with Australia’s financial regulator, Australian Securities and Investments Commission.
The court ruled that Bit Trade failed to meet the required standards for its margin trading product by not providing a target market determination, which is a requirement under Australia’s Corporations Act. This emphasizes the need for crypto products to meet stringent compliance measures to avoid potential consumer risks.
Kraken’s General Manager for Australia, Jonathon Miller, said the new derivatives broker offering is in response to increasing demand from institutional clients for compliant, high-security trading options. To qualify, an individual’s net assets must exceed $2.5 million (US$1.64 million) with a gross annual income exceeding $250,000 (US$164,000) for the last two financial years.
Australian wholesale clients can now explore the new offering via Kraken’s support page, and existing clients can confirm their eligibility through the Kraken Pro app.
