Kraken also accepts PayPal deposits, seeks to expand crypto derivatives services in the UK.

According to a report from The Block, Kraken is introducing PayPal deposit support for users in the UK and Europe. Deposits made via PayPal are almost instantly credited, allowing funds to be used for trading immediately. Kraken is also in discussions with the FCA through its UK-based derivatives company Crypto Facilities, aiming to expand its derivatives services.

Various Exchanges like Kraken Introduce PayPal Deposits

The cryptocurrency exchange Kraken is gradually rolling out services for deposits in euros and pounds via PayPal for users in the UK and Europe. UK users can link their PayPal accounts to Kraken's app within seconds, using PayPal balance, bank accounts, and linked payment cards, with a daily transfer limit of £1,000 and a current fee of 2.4%.

According to the regulations, Kraken users who fund their accounts through PayPal need to undergo intermediate or professional level verification to ensure that the name on their PayPal account matches the name on their Kraken account and reside in the UK or Europe excluding Hungary and Croatia.

The payment giant PayPal has recently made a strong move into the stablecoin market, being very friendly towards crypto companies. By leveraging its deep relationships with banks, it allows Coinbase and the Australian exchange Independent Reserve to deposit directly via PayPal, thus saving the crypto industry from the plight of being shunned by many banks.

Kraken Aims to Expand Crypto Derivatives Services

In 2019, Kraken acquired Crypto Facilities based in London. In 2021, this division obtained a license from the Financial Conduct Authority (FCA) to custody crypto assets. According to Bloomberg's report, Crypto Facilities is in discussions with the regulatory authority FCA to expand its existing license for offering a wider range of futures contracts to clients, a process that may take 6 to 12 months. Currently, Crypto Facilities provides futures contracts with leverage and cash settlement for institutional investors in assets such as Bitcoin and Ethereum.

The CEO, Mark Jennings, stated:

Our daily trading volume was between $7 billion to $8 billion before FTX was launched, and now it's close to $1 billion. But obviously, it's still far from the trading volume during a bull market.

According to data from the analytics firm CCData's report, derivatives are one of the most profitable areas in the cryptocurrency field. In August, the trading volume of derivatives on centralized exchanges reached $1.62 trillion, while spot trading volume was only $475 billion. FTX was one of the market's largest participants before its bankruptcy in November last year, with exchanges like Gemini and Coinbase Global Inc. actively entering this market thereafter.

U.S.-based crypto companies Coinbase and Gemini both launch offshore derivatives exchanges