Crypto exchange Kraken announced that it had received a Multilateral Trading Facility (MTF) license from UK’s financial watchdog, Financial Conduct Authority (FCA). The exchange has become the first FCA approved futures exchange in the United Kingdom. According to the crypto exchange, the license will easily enable institutional investors to trade on the futures platform efficiently. The license means that the crypto exchange will enhance its clientele to investors that could have been barred by the UK laws from using unlicensed exchanges.
“A sophisticated class of investors will have access to crypto derivatives in Europe for the first time.”
The CEO and the co-founder of the crypto exchange Kraken, Jesse Powell, explained that the exchange has been pursuing the licensing as the firm is determined to ensure that cryptocurrency is accessible to everyone. He further noted that obtaining this license from the Financial Conduct Authority (FCA) means that a sophisticated class of investors, limited by their own requirements to interface with a regulated venue such as an MTF, will now have access to crypto derivatives in Europe for the first time.
📣 *ANNOUNCEMENT* @KrakenFutures becomes the first licensed crypto futures venue in Europe
— Kraken Exchange (@krakenfx) July 6, 2020
The FCA issued a warning against BitMex.
The UK Financial Conduct Authority (FCA) had issued a notice earlier, saying that crypto derivatives exchange BitMex has been operating in the country without its authorization. According to the FCA’s notice, crypto derivatives exchange BitMEX is not authorized to operate in the United Kingdom. The FCA had also named the Kraken exchange in the notice but later removed the name saying it was an error on their part. Now Kraken has officially obtained the license that makes it the first futures exchange to operate in the United Kingdom. The Francisco-based crypto exchange bought out Crypto Facilities in February last year for an undisclosed amount, which analysts estimated to be more than $100 million.