Odaily Planet Daily reports that cryptocurrency exchange Kraken has announced that European traders can now use crypto assets as collateral on its MiFID-regulated derivatives platform. This move expands Kraken's operations in the EU, where the platform previously only supported fiat currency collateral. Kraken has obtained a MiCA license from the Central Bank of Ireland and has received approval from its Cyprus MiFID entity and the UK Financial Conduct Authority's (FCA) Multilateral Trading Facility (MTF) to provide derivatives trading and global liquidity support to EU users. Kraken's strategy allows European traders to use crypto assets as collateral within a regulated framework, with the conversion rate adjusted based on asset volatility and the crypto asset value automatically converted to USD for margin and liquidation calculations. Kraken stated that this new option primarily meets the needs of institutional clients and is expected to improve order book liquidity.