Kraken Futures (Formerly Crypto Facilities) Exchange is a trading platform focusing on BTC futures and other cryptocurrencies. Users can trade Bitcoin, Ripple, Ether, Litecoin or Bitcoin Cash with up to 50x leverage. The platform also provides a few indices, including the reference rate used by the Chicago Mercantile Exchange (CME) for its Bitcoin futures. In addition, OTC services are available for large orders.
Users are provided with BTC, ETH and XRP wallets upon signup to facilitate trading and the only way to upload and withdraw funds from your account is the blockchain. All the users’ accounts are held in segregated cold-storage wallets which are backed by the crypto-security company Elliptic. Crypto Facilities was purchased by Kraken in February 2019 and renamed to “Kraken Futures.” Following this acquisition, Kraken has provided some of its users with both spot and futures trading.
Launched in 2014, Crypto Facilities has received wide coverage in the top online magazines such as Bloomberg, Forbes, New York Times and many other reputable media. And there’s a good reason behind this interest: it’s the support of the UK’s Financial Conduct Authority (FCA). Although the United Kingdom is famous for its benevolent attitude towards cryptocurrencies, not many projects can boast that they are backed by governmental structures.
An interesting thing to pay attention to is the exchange’s Membership Agreement. As FCA enforces a lot of rules on companies, there is one related to the Financial Services Compensation Scheme (FSCS). This mechanism guarantees that clients will receive their funds even if their financial broker goes bankrupt. The point 3.2 of the platform’s Agreement states that this rule doesn’t apply as the account balance is kept in cryptocurrencies that have no established legal definition. Thus, holding your funds on the exchange may turn out to be quite a risky thing.
There is not too much information about the platform’s team on the web. Their profile at Crunchbase states that its CEO and COO is a person named Jean-Cristophe Laruelle. According to his Linkedin account, prior to establishing Crypto Facilities in June 2014, he had been working as a Software Architect for BNPParibas and Société Générale CIB for 13 years in a row.
On the front page of the platform, there is a security warning about fraudsters claiming to be affiliated with the project. This note appeared as a result of a few other companies using Crypto Facilities' FCA registration number. It is advised for those who desire to use the platform to be aware that their website is the only one where they operate and be pretty cautious.Read More