Kraken Wins Approval for Crypto-Backed Trading in EU

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In a sign of maturing crypto regulation in Europe, Kraken has received regulatory approval to allow traders to post digital assets as collateral on its derivatives platform. This shift highlights the evolving dialogue between crypto firms and European watchdogs.

When Kraken’s MiFID-regulated platform first launched, regulators required fiat-only collateral. “At that point in time, it was agreed with the regulator that we cannot offer crypto collateral to the European clients under a European regime,” said Alexia Theodorou, Kraken’s Director of Derivatives.

The reversal reflects a growing comfort level, achieved through what Theodorou described as extensive education efforts with CySEC and ESMA to help them understand products like perpetual futures. This milestone paves the way for more crypto-native financial activities under the EU’s emerging regulatory umbrella.