Kraken acquires crypto trading operation in large-scale deal

in cryptofacilities •  6 years ago  (edited)


Notable crypto exchange Kraken has acquired Crypto Facilities in an expensive business deal. Crypto Facilities is a major player in the regulated crypto trading space.

Kraken announced the big news via a press release on its blog today, stating the "nine-figure deal" as Kraken’s most sizeable acquisition yet.

Headquartered in London under the United Kingdom's Financial Conduct Authority, Crypto Facilities is a top crypto derivatives trading operation and index provider in line with regulation. Crypto Facilities statedly paved the way for regulated bitcoin, ether, XRP, litecoin and bitcoin cash futures.

In terms of crypto indices, Crypto Facilities is the top player, "calculating the CME CF Bitcoin Reference Rate that powers the CME Group’s Bitcoin futures," Kraken's press release detailed.

As a result of the acquisition, specified Kraken customers will have the opportunity to trade six different crypto futures asset pairings.

According to a quote from the press release, Kraken's CEO Jesse Powell said,

We are excited to introduce eligible clients to these industry leading futures and index products. Over the coming months, our teams will continue to enhance and expand these offerings. We’ve got great stuff in store for traders and institutional clients in 2019.”
Crypto Facilities also noted its positivity toward the deal. "Teaming up with Kraken allows us to innovate the next generation of products and tremendously boosts the value we are able to provide to our clients,” Crypto Facilities founder and CEO Timo Schlaefer posited.

The firm plans to stay in London under its current regulatory dealings.

https://twitter.com/jespow/status/1092445520243580928

Kraken has made several notable headlines over the past year. Last fall, Crypto Insider reported on Kraken adding the popular altcoin Tezos.

Powell also appears to be up to date on his security measures, as seen in a podcast interview with Peter McCormack of the What Bitcoin Did podcast.

Additionally, Kraken shook the headlines last year in April when the exchange declined a request from the New York Attorney General's office. Kraken reportedly left the BitLicense-requiring state of New York roughly four years ago.

That is not to say Kraken does not comply with regulations, however. In January of this year, Kraken posted an interesting Tweet revealing the high costs associated with U.S. subpoenas.

https://twitter.com/krakenfx/status/1081701788464558080?lang=en

Many notable exchanges, such as BitMEX and Deribit, ban U.S. usage. U.S. customers have skirted such measures by using Virtual Private Networks (VPNs). Although some exchanges recently have started cracking down on such activity.


Originally posted on Crypto Insider : https://cryptoinsider.com/kraken-acquires-trading-operation/

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