Kraken has expanded its offshore with a new derivatives trading venue in Bermuda, licensed by the Bermuda Monetary Authority.

Kraken, a major global cryptocurrency exchange, has launched a new derivatives trading platform in Bermuda after securing a digital asset business license from the Bermuda Monetary Authority, according to a company press release.

The move comes as the U.S. Securities and Exchange Commission increases scrutiny on crypto exchanges, pushing firms like Kraken to seek offshore opportunities.

With the BMA license, Kraken can now offer its clients a range of crypto derivatives, including perpetual and fixed-maturity futures, using various types of collateral, such as fiat currencies and over 30 cryptocurrencies, the release said.

Derivatives are financial contracts that allow users to speculate on or hedge against the future value of assets. They have become a key feature in crypto trading and account for most of the trading volume globally. Offering derivatives helps clients manage risk efficiently while capitalizing on market opportunities.

Kraken in Bermuda

Bermuda has become an attractive destination for crypto businesses due to its clear regulatory framework. Kraken joins other major players like Coinbase and HashKey Global, which have also received BMA licenses. 

Kraken’s new platform enables round-the-clock trading, reflecting the 24/7 nature of the crypto market, and aims to attract clients looking for a regulated venue with a broad range of derivatives products.

California-based digital asset trust and security company BitGo has received a Major Payment Institution license from the Monetary Authority of Singapore.

The company made the announcement on Aug. 8, stating that the MPI license allows it to offer regulated crypto payment services in Singapore, including custody and trading.

Following the approval, BitGo’s Singapore clients will be able to buy and sell crypto from the company’s cold storage custody solutions. Additionally, according to BitGo, the services will include access to its liquidity as well as insured cold storage custody solutions.

BitGo’s acquisition of the MPI license comes only days after HashKey Group’s over-the-counter trading subsidiary received similar approval from the Singapore regulator. It also comes about six months after BitGo obtained an initial in-principle approval as an MPI. 

The crypto custodian now joins 27 other digital asset companies, including Coinbase and Ripple (XRP), which have already secured full MPI licenses to offer crypto services in the city state.

Singapore has tried to build a strong regulatory framework for crypto, primarily overseen by MAS. They include the enactment of the Payment Services Act in 2019, as well as rules restricting digital payment providers from promoting their services to the general public. 

Crypto ownership in the tiny Asian country is one of the highest in the world. According to a recent report from global crypto payments provider Triple-A, more than 24% of Singaporeans owned some form of crypto. It puts the country only second to the United Arab Emirates in terms of crypto ownership, with 25.3% of the Middle-Eastern country’s citizenry holding crypto.

Per the report, the United States is much further behind, with only 15.5% of its population holding digital assets. However, unlike Singapore, crypto regulation in the U.S. is still not as clear cut, with the country’s regulator, the U.S. Securities and Exchange Commission accused of hampering the growth of the industry through its hard stance on crypto.