Crypto Facilities, a subsidiary of the largest crypto exchange in Europe, Kraken, has become the first crypto firm to obtain a Multilateral Trading Facility (MTF) license from the UK’s Financial Conduct Authority (FCA).
According to a press release, this new license will allow Crypto Facilities to be able to expand its product range. This will subsequently enable them to better serve institutional clients who are mandated to trade on licensed platforms.
With this new license, the company will be the only authorized derivatives marketplace in Europe offering leveraged trading of cryptocurrencies. The platform currently offers futures contracts priced in US dollars on BTC, ETH, LTC, XRP and BCH, with up to 50x leverage. The futures contracts allow traders gain exposure to crypto without holding or accepting delivery of any token.
According to Timo Schlaefer, CEO of Crypto Facilities, the company has pioneered crypto derivatives since 2015. He added that they are proud to now become the first licensed crypto derivatives exchange outside of the U.S.
Crypto Facilities was acquired by Kraken in 2019 and has since been operating under the trading name ‘Kraken Futures’. Speaking on this new move, Jesse Powell, CEO and Cofounder of Kraken said the company undergo these licensing efforts in order to make crypto accessible to everyone.
According to Powell, this particular license means that sophisticated class of investors, limited by their own requirements to interface with a regulated venue, will now have access to crypto derivatives in Europe for the first time. He added that, “more participants means more liquidity and better experience for everyone.”
Kraken is the world’s leading digital asset exchange based on euro volume and liquidity. It offers its clients with the opportunity to trade in more than 30 digital assets and 7 different fiat currencies. The exchange recently partnered with a Swiss bank to enable on-ramps for its European clients.