Kraken has launched MiFID II-regulated crypto derivatives trading for retail and institutional users in Europe. This follows its acquisition of a licensed Cypriot investment firm. The cryptocurrency exchange announced that its perpetual and fixed maturity crypto futures contracts will be available for trading by retail and institutional customers in the European Economic Area (EEA).

The launch follows the exchange acquiring a Markets in Financial Instruments Directive (MiFID) license in early February through the acquisition of a Cypriot investment firm, which was approved by the Cyprus Securities and Exchange Commission. According to Kraken’s head of exchange, Shannon Kurtas, Europe is one of the fastest-growing regions for digital asset trading and investment and clients and partners increasingly seek comprehensive offerings within a regulated framework.

Kurtas stated that the deployment of the new derivatives products allows users to seamlessly trade futures as part of a full suite of products on the platform. Derivatives will improve capital efficiency, access to liquidity, reliability, and enable sophisticated strategies and position management. Kraken’s derivatives will be offered through a Cyprus-based MiFID II-regulated entity, Payward Europe Digital Solutions.

The launch also follows Kraken completing its acquisition of the futures trading platform NinjaTrader earlier in May, as its first quarter revenue jumped 19% year-on-year to $471.7 million. Coinbase CEO Brian Armstrong mentioned that his firm will continue to look for merger and acquisition opportunities, after acquiring crypto derivatives platform Deribit. Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Gemini’s head of Europe, Mark Jennings, said that they will be able to offer regulated derivatives throughout the EU and EEA under MiFID II once they commence business activities. Decentralized finance platform Synthetix also plans to venture further into crypto derivatives with plans to re-acquire the crypto options platform Derive, pending approval from both communities.