Kraken Expands Trading Offerings To 8 Cryptocurrencies

 
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The world’s 27th ranked crypto exchange by volume trade, Kraken, has expanded the number of cryptocurrencies on its platform to an ambitious 8, by introducing BCH, XRP, and BTC to its already existing offering of ETH, ETC, REP, USDT as well as XMR for margin trading.

Enabled for mobile trading the platform now has an evolved user interface as well as analysis tools and charts for an ideal investor experience.

Non-collateral currencies BCH, XRP

According to a press release by Kraken, BCH, XRP are non-collateral currencies and hence open margin positions cannot be opened for BCH, XRP balance values. The clarification came; since Kraken encourages its users to maintain collateral currencies in the balances when trading, and if this were to be executed for BCH or XRP then the equity of the trader would be diminished.

Instead, it recommends, users should aim for higher profits at minimum risk with margin trading. At the same time, risks, where losses are amplified then margin positions, are closed forcibly in order to ensure leveraged funds are protected.

Margin Trading and its legal status

Kraken has been offering margin trading across its exchanges in the US. However, in many countries such as South Korea, margin trading offered by Coinone was considered illegal and categorized as gambling. At any time, Japan will decide on the banning margin trading.

However, Poloniex will stop offering its margin products in the US in order to remain compliant with regulatory needs.

More importantly, in September Kraken was dragged before the New York Department of Financial Services (NYDFS) on counts of violation of regulatory requirements.

Related news also reported the story of CEO, Jesse Powell not responding to a questionnaire by the Office of the Attorney General (OAG) report, on the grounds of ‘controlling’ behavior of the regulatory bodies in the US.

Margin trading is offered by a handful of exchanges whereby users are allowed to ‘borrow’ money against their account. The amount offered as an advance will be proportional to the current funds held by the user. This method of trading on the basis of cryptocurrency or ‘margin’ gives it the name, and the funds are used as collateral by the exchange to forward these loans to the account holder.

Many users are known to use such funds advanced for hedging, speculation and as keeping better control over the funds in their account. Typically professional traders would rather not have a full balance in their accounts with an exchange.