Kraken has made another strategic acquisition to support its expansion across Europe.
The crypto exchange has announced the closing of the Coin Meester (BCM) acquisition, one of the Netherlands’ oldest registered crypto broker firms.
Through the acquisition, Kraken is now expanding its Dutch footprint and business with a registered virtual asset service provider (VASP) license in France and Poland.
The acquisition marks a key milestone in Kraken’s European expansion efforts, according to Brian Grahan, Kraken’s managing director for Europe. Grahan wrote in a Sept. 24 announcement:
“We are one of the very few in Europe that can combine global scale with a compliant offering and a superior client experience. Our clients stand to benefit as we empower them with the premium trading and investing experiences needed to unlock crypto’s full potential.”
Kraken acquires BCM. Source: Kraken
The acquisition comes shortly ahead of the full implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for the crypto industry, set to go into full effect on Dec. 30.
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Kraken continues European expansion ahead of MiCA regulations
Kraken has accelerated its European expansion over the past two years, in anticipation of the MiCA regulatory framework.
Kraken is now able to offer regulated VASP services directly or through its existing partnerships in countries including Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands.
The European crypto market is “highly fragmented” and the growing competition is expected to drive some consolidation in the coming years.
This offers Kraken an opportunity to increase its European market share, added Gahan:
“The completion of the BCM acquisition is a key milestone in our European expansion, allowing us to leverage our strong footprint and market-leading position in euro volume and liquidity to significantly grow our market share in the years ahead.”
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More crypto firms are expanding to Europe
The upcoming MICA bill will make the European Union the first jurisdiction with a holistic regulatory framework on digital assets, which could be a pivotal moment for crypto regulation according to compliance experts.
The favorable regulations have also attracted the attention of other top crypto firms.
In October 2023, Coinbase selected Ireland as its European hub, which allowed Coinbase to start setting up shop in the EU ahead of the full implementation of the MiCA framework.
Top crypto exchanges by trading volume. Source: CoinMarketCap
Coinbase is the second-largest centralized cryptocurrency exchange (CEX) by trading volume, while Kraken is currently in sixth place, according to CoinMarketCap data.
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