Kraken to launch derivatives for Australian wholesale customers after regulatory upheaval

US-based crypto exchange Kraken has launched new crypto derivatives products for Australian wholesale clients, following a recent legal challenge in the country to comply with regulatory requirements.

Kraken's licensed brokerage offering will allow institutional clients to gain exposure to crypto price movements without directly holding underlying assets, the company said on Sunday.

The service includes multi-securities support—fiat, stablecoins, and crypto—held by Kraken as “one of the most robust security solutions” available for more than 200 trading assets.

Kraken said it is committed to maintaining a foothold in the Australian market while meeting institutional demand in an evolving regulatory landscape.

The operation comes months after Kraken's local operator, BitTrade Pty Ltd, lost a court case against Australia's financial regulator, the Australian Securities and Investments Commission.

Federal Court of Australia in August Purchased That BitTrade failed to meet the requirements for a target marketing product by failing to provide the required target market determination under the Australian Corporations Act.

The decision emphasized the need for crypto products to meet strict compliance measures to avoid consumer risks.

Now, as the company tries to clear that legal hurdle, its next challenge is differentiating itself from rival exchanges that offer similar products, including Swyftx and OKX.

Either way, Kraken's general manager of Australia, Jonathon Miller, said the derivatives brokerage offering was a response from institutional clients looking for compliant and highly secure trading options.

To qualify, an individual's net worth must exceed $2.5 million (US$1.64 million) with gross annual income exceeding $250,000 (US$164,000) for the last two financial years.

“Australian wholesale clients demand the ability to execute advanced trading strategies using a licensed broker,” Miller said in a statement.

Wholesale customers can start exploring the new offering on the Kraken support page, and existing customers can check their eligibility through the Kraken Pro app.