Kraken’s European Expansion with Acquisition of Coin Meester B.V. (BCM)

Kraken’s European Expansion with Acquisition of Coin Meester B.V. (BCM)

Crypto News – Kraken, a leading cryptocurrency exchange based in the US, has unveiled its strategic move to acquire Coin Meester B.V. (BCM), a prominent cryptocurrency broker situated in the Netherlands. This strategic acquisition is a pivotal step for Kraken in fortifying its footprint in the European cryptocurrency market.

Established in 2017, BCM holds the distinction of being one of the earliest registered crypto brokers in the Netherlands. It offers a diverse range of services encompassing cryptocurrency purchase, sale, and staking. With an extensive portfolio of over 170 digital assets and access to local funding channels, BCM has positioned itself as a notable player in the crypto brokerage arena.

Alignment with European Regulatory Frameworks

David Ripley, the CEO of Kraken, emphasized the significance of this strategic move in alignment with European regulatory landscapes. He stated, “The Netherlands boasts one of the world’s most advanced economies, characterized by a well-established culture of innovation and a substantial adoption of cryptocurrencies. This underscores its pivotal role in our European expansion strategy. The integration of BCM into our ecosystem will solidify Kraken’s standing in the Dutch market and enable BCM’s clientele to access an even more comprehensive product suite.”

Kraken’s ambitious plans for expansion in Europe dovetail with the European Commission’s recent introduction of the Markets in Crypto-Assets (MiCA) regulatory framework. This framework is designed to provide a conducive environment for industry stakeholders to invest in the region while affording consumers access to a wider array of competitive cryptocurrency products and services.

Regulatory Milestones and Diversification

In a recent milestone, the Central Bank of Ireland granted Kraken an e-money institution license, while the Bank of Spain officially registered the exchange as a virtual asset service provider (VASP). These regulatory endorsements mark significant milestones in Kraken’s aspirations for European expansion, enabling the exchange to extend its cryptocurrency services and offerings across the European Union.

Kraken is not limiting its focus to the realm of cryptocurrencies alone. The exchange is venturing into traditional financial markets by introducing trading services for US-listed stocks and exchange-traded funds (ETFs). This strategic move, as reported by Bloomberg, underscores Kraken’s commitment to diversifying its offerings beyond crypto assets. The anticipated launch date for these expanded services is set for 2024.

With the necessary regulatory licenses secured, Kraken is well-positioned to enter these regulated markets seamlessly. The exchange has further initiated the application process for a broker-dealer license from the Financial Industry Regulatory Authority (FINRA) in the United States.

Amidst Kraken’s efforts to strengthen its presence in the Netherlands, notable exchanges are exiting the market. Gemini recently announced the cessation of its services for Dutch customers, effective November 17, in response to regulatory pressures imposed by the De Nederlandsche Bank. Similarly, Binance ceased operations in the Dutch market on July 17 after failing to secure a VASP license.