In a strategic effort to expand its global presence, Kraken introduced a licensed broker service designed specifically for wholesale clients in Australia.
According to Kraken’s X (Twitter) feed , this new service gives Australian clients the ability to access derivatives linked to crypto assets. Moreover, it allows for advanced investment strategies without the need to directly hold the underlying assets.
The Monday, 4 November 2024, launch aligns with the US-based cryptocurrency exchange’s latest commitment to expand its presence in regulated markets.
Hey Australia 🇦🇺 – big news!
We are now offering access to crypto-based derivatives for eligible wholesale clients via our Australian financial services licensed broker.
Read more here: https://t.co/beFhgGaGGm pic.twitter.com/wl1jbfMVjE
— Kraken Exchange (@krakenfx) November 3, 2024
Advanced Custodial Solutions Meets Stringent Security Standards
To be eligible for Kraken’s derivatives products, the net asset for clients must be greater than AUD $2.5 million (USD $1.64 million). Moreover, the gross annual income should exceed AUD $250,000 (USD $164,000) for the last two financial years.
Kraken’s licensed broker service offers clients a multi-collateral support, allowing fund trades using a variety of assets, including fiat, stablecoins, and other cryptocurrencies.
Additionally, Kraken has implemented advanced custodial solutions to protect assets, and meet the stringent security standards set by the Australian Securities and Investments Commission (ASIC).
Kraken said that the feature highlights their goal to provide sophisticated tools that align with institutional requirements for secure and adaptable trading options.
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Kraken Insists On Compliant Crypto Derivatives In Australia
The introduction of this licensed broker service meets a growing demand among institutional and accredited investors in Australia for regulated crypto-based financial products
In fact, Kraken had voiced their concern on the absence of a clear regulatory framework in Australia, just a few weeks earlier.
The crypto exchange said that, “Australian crypto investors and businesses continue to operate in a confusing and uncertain regulatory environment.”
Jonathon Miller, Kraken’s General Manager for Australia and Rest of World, also stressed on the importance of regulatory compliance and security in Kraken’s approach
“Australia has long been a cornerstone of our global operation. Our licensed broker offering is testament to our ongoing commitment to regulatory compliance”, Miller stated
As outlined in their official blog post , the Crypto derivatives offer clients the ability to engage in advanced trading strategies and manage price volatility risks, without the need for holding the underlying assets.
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Company Continues To Expand In APAC
The launch of the licensed broker service is part of Kraken’s broader initiative to expand compliant access to crypto trading across the Asia-Pacific region.
Kraken had previously introduced custodial solutions for institutional clients in Australia, reinforcing its commitment to secure, regulated digital asset services.
The introduction of crypto derivatives trading in a structured and compliant setting further positions Kraken as a leader in meeting the needs of sophisticated investors.
Kraken currently has over 13 million clients worldwide.
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