Kraken Boosts European Presence with Planned BCM Acquisition

Kraken Boosts European Presence with Planned BCM Acquisition

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by Chimamanda U. Martha · 3 min read
Kraken Boosts European Presence with Planned BCM Acquisition
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In a strategic move to bolster its European expansion, cryptocurrency exchange Kraken has announced its intention to acquire Coin Meester B.V. (BCM), a Netherlands-based digital asset broker. The planned acquisition follows the recent implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which governs the operations of crypto exchanges in the region, including […]

In a strategic move to bolster its European expansion, cryptocurrency exchange Kraken has announced its intention to acquire Coin Meester B.V. (BCM), a Netherlands-based digital asset broker. The planned acquisition follows the recent implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which governs the operations of crypto exchanges in the region, including the Dutch market.

Kraken’s Commitment to European Growth

In a blog post dated October 5, the United States-based exchange stated that the planned acquisition is a testament to its commitment to expanding its footprint across the European market. The company aims to leverage its robust financial position and highly competitive product offerings to achieve this goal.

While the financial specifics of the acquisition remain undisclosed, Kraken has already secured virtual asset service provider (VASP) licenses to operate in other European regions, including Ireland, Italy, and Spain. The company has also expressed its active pursuit of operational licenses from other European jurisdictions.

Establishing a Strong Presence in the Dutch Market

Kraken’s CEO, David Ripley, attributed the decision to expand into the Netherlands to the country’s thriving economy, high crypto adoption rate, and culture of innovation.

“This makes it a key market for us in our European expansion plans. The acquisition of BCM will give Kraken a sizable position in the Dutch market and will allow BCM’s clients to benefit from an even more robust product offering,” said Kraken CEO.

Ripley further emphasized that acquiring the crypto brokerage firm BCM would give Kraken a significant presence in the Dutch market and grant BCM’s customers access to various product offerings.

BCM’s co-founder and CEO, Mitchell Zandwijken, highlighted the company’s mission of making cryptocurrencies accessible to all. He noted that this acquisition would enable BCM’s customers to benefit from the extensive range of crypto options available on Kraken.

“We founded BCM because we wanted to make crypto accessible to everyone. Kraken is the pioneer in this field with a track record spanning well over a decade, making it the perfect steward for our business going forward. Our clients will benefit from all that crypto offers through Kraken’s continuous investment and innovation.”

Kraken Steps into the Netherlands as Binance and Gemini Depart

Kraken’s expansion into the Netherlands comes following the exit of two other prominent crypto exchanges from the market due to mounting regulatory pressure.

In September, Gemini, a leading digital asset trading platform founded by Cameron and Tyler Winklevoss, announced its withdrawal from the Netherlands. The company cited regulatory requirements imposed by the country’s central bank as the primary reason for its exit, urging Dutch users to withdraw their assets or transfer them to alternative wallets before November 17, 2023.

Another rival exchange, Binance, departed the Netherlands in June after its application for registration under the Dutch crypto authorization regime was rejected. Binance attributed its departure to its inability to obtain registration as a virtual asset service provider (VASP) with the Dutch regulator.

Nevertheless, both Binance and Gemini have expressed their intentions to re-enter the Dutch market in compliance with the new regulatory guidelines outlined in the MiCA regulation.

Blockchain News, Cryptocurrency News, News
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