Kraken Expands UK Cryptocurrency Derivatives with PayPal Deposits

Anar999

According to The Block's report, Kraken is gradually introducing PayPal deposit support for its users in the UK and Europe. Deposits made via PayPal are almost instant and can be used for trading immediately. Additionally, Kraken is in discussions with the FCA (Financial Conduct Authority) through its derivatives subsidiary Crypto Facilities, aiming to expand its cryptocurrency derivatives services.

Various cryptocurrency exchanges, including Kraken, are now offering PayPal deposit services for Euro and Pound Sterling deposits to users in the UK and Europe. UK users can link their PayPal accounts to Kraken's app within seconds and transfer up to £1,000 per day using PayPal balances, bank accounts, and linked payment cards. The current fee is 2.4%.

As per regulations, Kraken users who fund their accounts via PayPal need to undergo intermediate or professional-level verification to ensure that the name on their PayPal account matches their Kraken account's name and that they reside in the UK or Europe (excluding Hungary and Croatia).

PayPal, a leading payment platform, has recently entered the stablecoin market and has been friendly towards cryptocurrency companies. Its strong relationships with banks have allowed platforms like Coinbase and the Australian exchange Independent Reserve to accept PayPal deposits, addressing the previous issue of many banks avoiding the cryptocurrency industry.

Kraken aims to expand its cryptocurrency derivatives services. In 2019, Kraken acquired Crypto Facilities, based in London, UK. This subsidiary obtained a license from the Financial Conduct Authority (FCA) in 2021 to provide custody of cryptocurrency assets. According to Bloomberg's report, Crypto Facilities is in discussions with the regulatory authority FCA to offer a wider range of futures contracts to its customers, which would require an expansion of its existing license (Crypto Facilities' multilateral trading facility license). This process may take 6 to 12 months. Currently, Crypto Facilities offers leveraged and cash-settled futures contracts for institutional investors, including Bitcoin and Ethereum.

Mark Jennings, the CEO of Crypto Facilities, stated: ""Before FTX launched, we were doing $700 million to $800 million in volume a day, and now we're close to $1 billion. But obviously, it's still a long way from the kind of volumes you see in a bull market.""

Data from the analytics company CCData shows that derivatives are one of the most profitable sectors in the cryptocurrency industry. In August, centralized exchanges saw derivatives trading volumes of $1.62 trillion, while spot trading volumes amounted to only $475 billion. FTX was one of the market's largest participants before its collapse in November last year, followed by exchanges like Gemini and Coinbase Global Inc., which have since actively entered this market.

Samta

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Isha000

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