Kraken Introduces Licensed Crypto Derivatives for Australian Wholesale Market Despite Past Regulatory Hurdles

Cryptocurrency exchange Kraken has launched a suite of crypto-based derivatives products for Australian wholesale clients through its licensed local broker, marking a strategic expansion in the region following earlier regulatory challenges.

The new offering enables eligible institutional clients to gain exposure to cryptocurrency price movements without holding the underlying assets, featuring over 200 tradable assets with multi-collateral support including fiat, stablecoins, and cryptocurrencies. All assets will be secured through Kraken’s custodial solution, backed by round-the-clock support services.

“Over our 13 year history, we have always aspired to be one step ahead of market demand,” said Jonathon Miller, Kraken’s GM for Australia and Rest of World. “Australian wholesale clients are looking for the ability to execute advanced trading strategies using a licensed broker backed by Kraken’s high security standards.”

The launch comes in the wake of a recent regulatory setback. In August, Australia’s Federal Court ruled that Bit Trade Pty Ltd, Kraken’s Australian entity, had failed to comply with design and distribution obligations for its margin trading product. The court found that while crypto-based margin extensions were compliant, those involving national currencies required a target market determination under the Corporations Act.

This new derivatives offering appears to be part of Kraken’s broader strategy to strengthen its position in the Australian market while ensuring regulatory compliance. The move follows the July expansion of Kraken Custody services to Australian institutional clients, highlighting the exchange’s commitment to developing its institutional product suite.

Prospective Australian wholesale clients can explore the new offering through Kraken’s Support page, while existing wholesale clients can verify their eligibility directly through the Kraken Pro app. The service is specifically designed for institutional and high-net-worth individuals who meet specific financial thresholds.

Miller emphasized that “Australia has long been a cornerstone of Kraken’s global operation,” adding that the licensed broker offering demonstrates their “ongoing commitment to regulatory compliance and to bringing exciting crypto products to market that can truly unlock institutional demand for cryptoassets.”