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Kraken Expands European Footprint with New Acquisition Deal

2 mins
Updated by Ciaran Lyons
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In Brief

  • Cryptocurrency exchange, Kraken, aims to expand its European presence by acquiring Dutch exchange Coin Meester B.V.
  • The Netherlands' economy, innovation culture, and high crypto adoption rate make it a key market for Kraken's expansion.
  • Kraken's recent regulatory approvals for VASPs in Ireland, Italy, and Spain fuel optimism for further market entries.
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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 Popularity In Europe. Source: World Economic Forum
Crypto Popularity In Europe. Source: World Economic Forum

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.

Top crypto platforms in the US | March 2024

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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