Kraken, the cryptocurrency exchange, has been licensed by the Bermuda Monetary Authority to offer crypto derivatives trading from the island.

The exchange, which describes itself as one of the longest-standing, most liquid and secure cryptocurrency exchanges, said its new global derivatives location in Bermuda comes as it is preparing “to open up a fast-expanding part of the space to clients looking for a properly licensed venue in a sophisticated, internationally respected jurisdiction”.

A company statement said: “Reflecting the 24/7 nature of the crypto market, Kraken clients can trade derivatives round-the-clock via a venue that operates under a robust regulatory framework. Kraken is now licensed by the Bermuda Monetary Authority, a global leader in cryptocurrency regulation, to offer crypto derivatives trading from the territory.

“The news marks another major milestone for Kraken in its efforts to create the premier platform for crypto trading and investing. Kraken’s new global derivatives venue, with over 200 different contracts available, is well-timed as clients look to use derivatives to better tailor their digital asset exposures.”

Shannon Kurtas, head of Trading at Kraken commented: “Derivatives now account for the majority of total crypto trading volumes.

“Clients use derivatives for capital-efficient hedging, cross-margined exposure, as well as yield and arbitrage opportunities, among others.

“Providing our clients with the ability to trade derivatives securely and efficiently means they can take advantage of these diverse opportunities more easily, as we anticipate continued growth in derivative volumes and open interest.”

David Burt, the Premier and Minister of Finance stated: “We are pleased to welcome Kraken to Bermuda and in joining our growing market of BMA licensed digital asset businesses.

“Since 2017, we set out on a mission to provide regulatory clarity for digital asset businesses which uphold our jurisdiction’s standards in compliance and risk management.

“We are happy to see global businesses like Kraken recognising Bermuda as a premier jurisdiction for digital finance.”

From Bermuda, Kraken will initially offer perpetual and fixed maturity futures against a diverse range of collateral options, including fiat currency and more than thirty cryptocurrencies, providing clients with a greater degree of flexibility in managing their positions and risk.

Access to the venue is available to clients in eligible jurisdictions via Kraken's high-performance Application Programming Interfaces and market-leading web and mobile platforms.