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By Jose Aquino
Last Updated: May 2, 2025
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By Shraddha
In a move that caught the attention of institutional traders, crypto exchange Kraken launched crypto derivatives trading in the UK for those who qualify as “Professional Clients” under the Financial Conduct Authority (FCA) rules.
While spot trading often gets more attention, derivatives have become a huge part of the global crypto market. It’s estimated that around 70%-75% of crypto volume is derived from futures and derivatives products. Kraken derivatives trading UK aims to meet this demand by providing a regulated and sophisticated compliance-first environment without limiting innovation.
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In traditional finance, derivatives allow you to speculate on price movements or hedge risk by trading contracts that derive value from an underlying asset. Crypto derivatives work the same way, except the underlying asset is typically Bitcoin, Ethereum, or other cryptos. Traders can:
The appeal is clear: derivatives often come with leverage, unlocking higher potential returns (and risks). This is one of the main reasons that derivatives have accounted for most of crypto’s global trading volume.
Kraken provides crypto derivatives trading services in the UK through a regulated platform known as a Multilateral Trading Facility (MTF). The MTF is operated by its subsidiary, Crypto Facilities. This subsidiary company was bought by Kraken in 2019, which became the first crypto firm to receive an MTF license from the UK’s FCA in 2020.
Although the MTF is responsible for ensuring that UK regulations are followed, the trades are made via Kraken’s Bermuda-based entity, Kraken Derivatives (which is regulated by the Bermuda Monetary Authority under its Class F license).
While most perpetual futures commonly allow only a single form of collateral (like stablecoins) to be pledged for margin, Kraken’s multi-collateral approach allows traders to pledge different crypto-asset collaterals for margin, including USD, USDT, BTC, ETH, and others. This capital-efficient approach is quite appealing for fund managers looking to optimize their margin.
Combining these perks with Kraken’s high liquidity has attracted many professional clients looking for a regulated entry point into crypto derivatives.
Kraken has positioned itself as one of the best crypto exchange options for serious traders. Beyond its expansion plans within the UK, the company has been busy with:
Plenty of exchanges offer futures, so what makes Kraken stand out?
Under FCA crypto regulations, UK users fall into two main categories: Retail Clients and Professional Clients. Retail clients get more consumer protections but face heavier restrictions on leveraged products—especially crypto derivatives.
Kraken Professional Clients need to meet specific criteria around trading experience, financial stability, and expertise. They get access to a broader range of financial instruments, but with fewer regulatory safeguards.
Anyone hoping to trade Kraken futures trading in the UK must pass a classification process. For more details, see the FCA Professional Client Classification guidelines.
In short, professional traders and institutions can now tap into a regulated derivatives market on Kraken’s platform. They can benefit from advanced tools like leveraged positions and multi-collateral contracts and can do so under an FCA-approved structure.
The shift doesn’t yet open doors for retail traders. Crypto futures remain off-limits unless they qualify for professional status. However, future policy changes could expand access if UK regulators decide to ease restrictions on retail derivative products for crypto.
Kraken’s latest UK derivative push is part of a broader blueprint to become a bridge between traditional and digital finance. With expansions into stock and ETF trading in select U.S. regions, the firm is eyeing a future where one platform might handle everything from Bitcoin perpetuals to traditional stocks. Last year’s reported $1.5 billion in revenue shows Kraken’s growth—and rumors of an IPO continue to swirl.
If Kraken can juggle the regulatory demands across different markets, it may well emerge as a leading full-service provider, catering to both seasoned institutional players and mainstream retail traders.
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Kraken’s FCA-regulated Multilateral Trading Facility (MTF) is run by its subsidiary Crypto Facilities and has become the first crypto firm to receive an MTF license from the UK’s FCA. Essentially, an MTF is a regulated platform that facilitates cryptocurrency derivatives such as perpetual futures.
Individuals or businesses meeting FCA criteria on trading experience, financial resources, or proven expertise with leveraged instruments.
They’re derivative contracts letting traders use different crypto assets as collateral, improving capital efficiency and hedging strategies.
Currently, only professional clients can access these products. Broader availability depends on FCA rulings and any future regulatory shifts.
Kraken sets itself apart through a focus on regulatory compliance, innovative product features (like multi-collateral trading), and a growing institutional focus.
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
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Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, TradingPlatforms, StockApps, and BuyShares. Read More
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Kraken Introduces Crypto Derivatives Trading in the UK 2025 – 99Bitcoins
