Kraken Enables Crypto as Collateral on MiFID-EU Derivatives Platform, Cementing Europe’s Largest Crypto Perpetual Futures Exchange

Kraken is expanding its risk framework by enabling cryptocurrency as collateral on its MiFID-regulated EU derivatives platform, according to remarks from Derivatives Director Alexia Theodorou reported by The Block. The change is designed to broaden Kraken’s presence across Europe as the firm scales its derivatives trading services that launched across the EU in May.

Theodorou framed the update as a step to fortify Kraken’s leadership as the largest cryptocurrency perpetual futures exchange in Europe. She said that when MiFID approval was granted, MiCA was not yet in effect and there were no operational regulated European custody providers; consequently, the group could not offer cryptocurrency collateral services to clients within the European regulatory framework.