Kraken announced receiving a significant license for one of its subsidiaries in the UK. The firm just received a Multilateral Trading Facility (MTF) from the Financial Conduct Authority (FCA) in the UK to become the first crypto firm obtaining this license.
MTF License as a Means to Grow Business
The new official legal license for Crypto Facilities provides multiple opportunities regarding business growth. It can now expand services and offerings for the users. Primarily industrial and enterprise clients can benefit from the new license. Enterprise clients must only trade in licensed platforms. With the Crypto Facilities receiving the MTF license, it will be easier for them to join the futures trading ecosystem in the cryptocurrency industry.
Crypto Facilities will now be the first licensed marketplace for derivatives in Europe that offers cryptocurrency trading.
“Leveraged, cash-settled futures contracts offer a valuable tool for traders seeking exposure to bitcoin and other crypto-assets without holding or accepting delivery of the product,” according to Kraken.
Kraken exchange looks for keeping its momentum growing business in Europe. Technology businesses in this region have to meet many requirements regarding user privacy, security and local guidelines. Receiving a necessary license in one of the biggest economies in Europe means more natural growth path for the company.
“We undergo these licensing efforts because Kraken is about making crypto accessible for everyone,” according to Jesse Powell, CEO and Cofounder of Kraken.
“This particular license 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. More participants means more liquidity and a better experience for everyone.”
Crypto Facilities that became a subsidiary to Kraken in 2019 can now look for many more clients, especially enterprise ones in the UK. Besides, soon there will be more opportunities for it to become a licensed legal company in other European countries. Timo Schlaefer, CEO of Crypto Facilities added:
“Crypto Facilities has pioneered cryptocurrency derivatives since 2015. We are proud to now become the first licensed cryptocurrency derivatives exchange outside of the US.”
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