Kraken Expands in Europe With Regulated Crypto Derivatives Under MiFID II

Kraken, one of the longest-standing crypto exchanges in the world, has officially launched MiFID II-compliant crypto derivatives trading in Europe. This strategic move is a direct result of its recent acquisition of a licensed investment firm in Cyprus, giving it regulatory clearance under the European Union’s Markets in Financial Instruments Directive (MiFID II).

Now, both retail and institutional clients in the European Economic Area (EEA) can trade perpetual and fixed maturity crypto futures contracts — a big step forward for regulated crypto access on the continent.

Europe’s Growing Appetite for Regulated Crypto Products

According to Shannon Kurtas, Kraken’s Head of Exchange:

“Europe is one of the fastest-growing regions for digital asset trading and investment, with some of the most sophisticated and demanding clients and institutions.”

It’s no surprise, then, that Kraken is prioritizing expansion in the EU. The region’s MiFID II framework allows Kraken to offer a fully regulated derivatives experience, which is critical in attracting institutional capital and giving retail users a more secure environment for trading high-risk products.

What Are Crypto Derivatives, and Why Do They Matter?

In simple terms, crypto derivatives are financial contracts that allow traders to speculate on the future price of cryptocurrencies without actually owning the underlying asset. These include:

• Perpetual contracts: Never expire; designed for short-term and high-leverage trading.
• Fixed maturity contracts: Have a set expiration date and are typically used for more strategic hedging or speculation.

With the introduction of these tools:

• Retail investors get access to more advanced strategies.
• Institutions can hedge their exposure or boost returns more efficiently.
• Market liquidity is expected to improve significantly.

Kurtas highlighted that derivatives help users enhance capital efficiency, liquidity access, and position management, all within a compliant framework.

How Kraken Got Here: The Cyprus Advantage

Kraken’s regulated derivatives are offered through Payward Europe Digital Solutions, a Cyprus-based MiFID II entity.

In early February 2025, Kraken acquired a licensed investment firm in Cyprus, approved by the Cyprus Securities and Exchange Commission (CySEC). This cleared the path for its new derivatives offerings, making it one of the few major exchanges with a strong regulatory foothold in both the U.S. and Europe.

This isn’t just a token gesture — it’s a deliberate move to align with Europe’s growing demand for compliant digital asset solutions.

Competition Heating Up: Kraken, Coinbase, Gemini & More

Kraken isn’t alone in this push.

• Coinbase is acquiring Deribit — one of the largest crypto derivatives platforms globally — signaling that it’s ready to dominate this space.
• Gemini just received EU approval to roll out MiFID II-compliant derivatives.
• Synthetix, a DeFi protocol, announced plans to reacquire Derive, a crypto options platform, pending community approval.

Clearly, crypto derivatives are in high demand, and centralized and decentralized platforms alike are racing to meet that need in regulated environments.

Why This Expansion Matters

Here’s why Kraken’s derivatives launch under MiFID II is a big deal:

✅ For Traders in the EEA

• Access to regulated crypto derivatives without the need for offshore accounts.
• Safer exposure to complex products with legal protections.
• Integration with Kraken’s full suite of services, including spot, staking, and now, futures.

✅ For Institutions

• Europe-based hedge funds, asset managers, and trading firms now have access to fully compliant crypto futures.
• More ways to hedge positions, improve capital usage, and manage portfolio risk.

✅ For Kraken

• Strengthens its position as a global leader in crypto trading.
• Diversifies revenue streams — especially relevant after its first quarter revenue rose 19% YoY to $471.7 million.
• Follows its recent acquisition of futures trading platform NinjaTrader, boosting its capabilities further.

What’s Next?

With Kraken’s European derivatives desk now open for business, expect other major exchanges to follow suit or accelerate their EU strategies. The crypto market is clearly moving toward a more institutional, regulated future — and Kraken is ahead of the curve.

Whether you’re a retail trader looking for new strategies or an institution seeking compliant access, this move signals a new chapter in global crypto trading.

Final Thoughts

Kraken’s launch of MiFID II-regulated crypto derivatives is more than just a headline — it’s a clear signal that crypto is growing up. The days of unregulated wild west trading are fading, replaced by a more secure, compliant, and investor-friendly environment.

As the regulatory landscape tightens, platforms that adapt — like Kraken — are setting the standard for the next generation of crypto finance.