- After Coinbase and HashKey Global reach the island, Kraken follows suit.
- Kraken’s legal name, Payward Digital Solutions, was granted a Class F Digital Business License.
In order to facilitate derivatives trading, crypto exchange Kraken has established a trading platform in Bermuda. The BMA has granted Kraken the necessary license. An increasing number of people are considering Bermuda as a potential location for crypto activities. After Coinbase and HashKey Global reach the island, Kraken follows suit.
According to the BMA, Kraken’s legal name, Payward Digital Solutions, was granted a Class F Digital Business License on July 30. This license allows Kraken to do a lot of activities, like run a digital asset derivative exchange, lend or buy digital assets, and serve as a wallet service.
Banking on Derivatives Trading
Moreover, over 200 contracts are offered for perpetual and fixed maturity futures on Kraken’s new platform. Also, users have the option to use fiat cash or over 30 different cryptocurrencies as collateral. Kraken characterized their growth as “well timed” in its statement.
Furthermore, a large portion of the entire amount of cryptocurrency trades now involves derivatives, according to Head of Trading Shannon Kurtas. The derivatives and open interest are expected to continue growing.
The exchange said that customers in certain areas are eligible to utilize the platform, however it did not define which jurisdictions this applies to. Since the inauguration of pro-cryptocurrency Premier E. David Burt in 2017, Bermuda has been proactively developing its crypto industry. The Digital Asset Business Act of Bermuda was approved in 2018.
Approximately 40 new positions were generated in 2018 as a result of Binance’s investment in a “global compliance base” in Bermuda. Also, in 2020, the first Bitcoin exchange-traded fund (ETF) was listed on the Bermuda Stock Exchange.
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