Cryptocurrency exchange Kraken has revealed its plan to acquire a Netherlands-based crypto exchange, aiming to strengthen its foothold in the European market.
Coin Meester B.V. (BCM) is one of the Netherlands’ longest-running exchanges and has been run for almost six years.
Kraken Persists in Expanding Its European Presence
In a recent statement, Kraken announced the news with a major focus on its efforts to expand into Europe.
Kraken CEO David Ripley pointed to the Netherlands’ rapidly growing economy and its talent for innovation as the primary reasons for their interest in the acquisition:
“The Netherlands has one of the world’s most advanced economies, with a well-established culture of innovation and a high level of crypto adoption. This makes it a key market for us in our European expansion plans.”
Meanwhile, Kraken highlighted its recent regulatory approvals for Virtual Asset Service Providers (VASPs) in Ireland, Italy, and Spain. The exchange holds an optimistic outlook regarding its prospects for obtaining further approvals in the continent in the near future.
“We are actively pursuing registrations in other European markets.”
According to recent data from the World Economic Forum, the Netherlands is tied for the 6th position out of the 50 European countries in terms of the percentage of its population investing in cryptocurrencies.
Crypto Industry’s Growing Focus on the European Market
The contract remains pending finalization as both parties still need to reach an agreement on specific conditions. Meanwhile, Kraken has not revealed the sale price for BCM.
“Completion of the proposed acquisition is subject to customary closing conditions, including obtaining the required regulatory approvals. Financial details of the transaction weren’t disclosed.”
Meanwhile, Kraken is facing legal troubles in Australia over its margin trading product. On September 21, reports revealed that The Australian Securities and Exchange Commission (ASIC) has sued Bit Trade, the provider of Kraken to Australian customers.
ASIC allege that Kraken failed to create a “target market determination” before launching the product.
This follows the consensus among European regulators to strengthen crypto regulations. On May 16, 27 European finance ministers voted in favor of the Markets in Crypto-Assets (MiCA) legislation, signaling their intention for approval.
These rules largely aim to address tax-related loopholes in the crypto industry and are scheduled for implementation in July 2024.
Meanwhile, BeInCrypto recently reported that the crypto and stock trading platform eToro has received regulatory approval in the European Union. E-Toro has reportedly registered as a Crypto Assets Service Provider (CASP) with the Cyprus Securities and Exchange Commission (CySEC).
On the other hand, while the United States has faced challenges in its attempts to launch Bitcoin ETFs, Europe recently debuted its first Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam stock exchange.
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.