Kraken Launches Crypto Derivatives in Europe Under Cyprus License

Kraken announced on Tuesday, May 20, 2025, the launch of its crypto derivatives products for European customers. These services are being offered under a Cyprus license that the American crypto exchange acquired earlier this year. With this Markets in Financial Instruments Directive (MiFID II) license, Kraken can passport its authorization from Cyprus to offer crypto derivatives across other countries within the European Economic Area (EEA).

It was previously reported that Kraken obtained the Cyprus license by purchasing a local entity that was formerly associated with the contracts for differences (CFDs) broker Pacific Union Group, which now operates as PU Prime outside of Cyprus. The recent announcement confirmed that Kraken will offer both perpetual and fixed maturity contracts to its European clientele.

Shannon Kurtas, Head of Exchange at Kraken, commented on the development, stating, "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." She added that "Clients and partners increasingly seek comprehensive offerings within a regulated framework." According to Kurtas, these new crypto derivatives products are expected to improve "capital efficiency, access to liquidity, reliability, and enable sophisticated strategies and position management."

Founded by Jesse Powell in 2011 and launched in 2013, Kraken, headquartered in San Francisco, is one of the longest-standing cryptocurrency exchanges still in operation. The exchange has plans to go public by the end of 2025 or early 2026, reportedly aiming to raise up to $1 billion in debt before its public listing. This move follows other developments in the sector, such as eToro, a retail broker with a significant crypto offering, recently going public through an initial public offering (IPO), with its shares listing at a premium on Nasdaq. Another retail broker, Robinhood, which also generates a substantial portion of its revenue from crypto, is now reportedly looking to diversify away from the asset class due to the fluctuating nature of trading volumes. If listed, Kraken would become the second crypto-only exchange to go public after Coinbase, which recently joined the S&P 500 index. Beyond crypto, Kraken is also expanding into traditional asset classes, having acquired the retail futures trading platform NinjaTrader in a $1.5 billion deal.