Alexia Theodorou, Derivatives Director and General Manager of Kraken Cyprus, reflects on why the company chose Cyprus as a trustworthy and reliable partner for its European expansion strategy and offers insights into where the island can position itself in the evolving landscape of regulated digital finance.
Kraken is one of the world’s longest-established and most trusted multi-asset trading platforms. Founded in 2011, it has grown over the last 15 years into a full-spectrum financial services business serving millions of retail and institutional clients across more than 190 countries.
Kraken offers a comprehensive suite of products including spot and derivatives trading, regulated custody services and institutional-grade infrastructure.
In 2025, Kraken’s parent company, Payward, established operations in Cyprus, impressed by the country’s robust regulatory framework, its internationally oriented workforce and strong position as a gateway to Europe’s financial markets. Its investment in Cyprus will contribute to the development of a mature, sustainable digital finance ecosystem.
Kraken obtained its Markets in Financial Instruments Directive (MiFID) licence through Cyprus in 2025. What were the main factors that led to Cyprus becoming part of the company’s EU expansion strategy?
Our MiFID licence lets us offer regulated derivatives to clients across 30 countries in the EEA from a Cyprus base. A few things made Cyprus the right home for that: CySEC is an experienced supervisor with real depth in MiFID II and capital markets, and it engages seriously with firms that want to do things properly. We found genuine appetite across government, the regulator and the business community for attracting responsible investment in regulated financial services. That combination is rare and it was an important signal for a business that chooses to operate inside regulated frameworks rather than around them.
How has Cyprus facilitated Kraken’s growth in the EU and where do you see opportunities for further development?
The licence is the foundation. From Cyprus, we can passport regulated derivatives across the EEA, so one base can support clients in many markets. We’ve also been building on the ground: a new office in Limassol, a growing local team and more roles to come as the business develops. As regards further development, Cyprus is becoming a serious home for regulated digital finance, pairing its capital-markets experience with the newer frameworks for crypto. We would like to be part of that and to keep contributing to the local economy and talent base as we grow.
A year is arguably a long time in the fast-moving crypto ecosystem. How do you view the regulatory environment evolving and where can Cyprus position itself in this landscape?
The clearest shift is that Europe now has dedicated rules for crypto markets alongside the established MiFID framework for derivatives, so firms increasingly compete on the strength of their regulation rather than the absence of it. We think that this is a healthy direction. Clear rules give clients confidence and give serious firms a durable base to build on. Cyprus is well-placed in that picture. It has long experience supervising investment firms under MiFID II and a talent base that knows the sector well. By building on that foundation, Cyprus can become a reference point for regulated digital finance, not only for crypto-native firms but for the wider market moving onto these rails.
How has Kraken maintained the trust that it has built since 2011 and what does operating under its Cyprus licenses signal to your clients and competitors?
Trust is earned slowly and lost quickly so we have treated it as the core of the business since 2011. In practice, it means security and transparency that clients can check rather than take on faith, such as our independently verified Proof of Reserves, and a consistent choice to operate inside regulation rather than around it. We have held that line through several market cycles, and clients remember which platforms did so. Operating under our Cyprus licence is part of the same story. To clients, it signals that their derivatives trading sits within a recognised European framework, supervised by CySEC, and that we are held to the conduct and client-asset rules set by that framework. To the wider market, it signals that we treat strong regulation as the foundation we build on, not a box to tick. That is the standard we hold ourselves to and we think it is the one that the whole industry is moving towards.
The Invest Cyprus International Investment Award recognises not only Kraken’s success but also its commitment to Cyprus. What does this award mean to the company and why is it important to your long-term vision?
Kraken is honoured to receive this recognition from Invest Cyprus. Cyprus is a strategic hub and our presence here is a long-term commitment rather than a foothold. Our wider aim is to help build a financial system that is more open and fair, and Cyprus is central to how we do that in Europe. We take the award as encouragement to keep investing in the country and in its standing as a centre for responsible financial innovation.
This interview first appeared in the July edition of GOLD magazine. Click here to view it.
