Key Points:
- Kraken’s acquisition of Dutch crypto broker BCM bolsters its presence in Europe.
- The move showcases Kraken’s commitment to expanding across the continent.
- Kraken is optimistic about MiCA regulations as they aim to standardize the crypto industry in the EU.
Kraken, one of the world’s longest-standing cryptocurrency exchanges, is fortifying its European foothold with plans to purchase Coin Meester B.V. (BCM), a Dutch cryptocurrency broker. In a press release issued on October 5th, Kraken revealed that this acquisition would enable the exchange to establish a substantial presence in the Dutch market, ultimately benefiting BCM’s clientele.
Kraken’s Move to Acquire BCM
Boasting support for over 170 digital assets, BCM holds the distinction of being one of the Netherlands’ oldest brokerage firms. By acquiring BCM, Kraken is reaffirming its commitment to expanding its reach across Europe. The exchange intends to diversify its product portfolio, enhance liquidity, and bolster security measures to cater to a broader user base.
Kraken’s CEO, David Ripley, commented:
“The Netherlands stands out with one of the world’s most advanced economies, a well-established culture of innovation, and a high level of cryptocurrency adoption. This positions it as a crucial market in our European expansion strategy. The acquisition of BCM will firmly establish Kraken in the Dutch market and provide BCM’s clients with an even more robust range of products and services.”
Kraken also expressed its optimism regarding the European Commission’s introduction of the Markets in Crypto-Assets (MiCA) regulatory framework. MiCA aims to bring comprehensive cryptocurrency regulation to the European Union (EU).
MiCA Rules for Investor Protection and Adjustments in the Exchange Landscape
The European Union has highlighted that MiCA’s primary goal is to safeguard consumers and investors by mitigating risks associated with cryptocurrencies, including vulnerabilities to hacks and fraudulent schemes, while promoting financial stability and market integrity.
By instituting clear regulations and requirements for cryptocurrency businesses and market participants, MiCA seeks to “level the playing field” and stimulate innovation in the sector. MiCA came into effect on June 1, 2023, with full implementation set for 2024.
As a result of these developments, cryptocurrency firms and exchanges, such as Binance France, are closely monitoring the implementation of MiCA. In late August, Binance France expressed that the Autorité des Marchés Financiers (AMF) license presented an “opportunity to adapt to regulatory challenges and capitalize on opportunities within the European market.”
In Europe, Kraken has already obtained an Electronic Money Institution license from the Central Bank of Ireland and a virtual asset service provider (VASP) registration from the Bank of Spain. With the Irish license, Kraken can offer euro-to-crypto trading services throughout the EU.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
