Kraken’s European Ambitions: In a strategic move to amplify its European presence, renowned cryptocurrency exchange Kraken has unveiled its intentions to acquire Coin Meester B.V. (BCM), a prominent crypto exchange based in the Netherlands. With a legacy spanning nearly six years, BCM stands as one of the Netherlands’ most enduring exchanges.
Kraken’s CEO, David Ripley, emphasized the significance of the Netherlands in their European growth strategy, citing its flourishing economy and innovative spirit:
“The Netherlands boasts a globally recognized advanced economy, enriched by a deep-rooted culture of innovation and a remarkable rate of crypto adoption. It’s an essential destination in our European growth journey.”
Further accentuating its European aspirations, Kraken spotlighted its recent regulatory nods for Virtual Asset Service Providers (VASPs) in countries like Ireland, Italy, and Spain. The exchange remains hopeful about securing more such approvals across Europe, stating, “Our pursuit for registrations in other European territories is in full swing.”
Recent insights from the World Economic Forum indicate that the Netherlands ranks joint 6th among 50 European nations concerning the proportion of its populace investing in digital currencies.
Crypto’s European Surge: While the acquisition deal awaits final terms agreement, Kraken has kept the purchase amount for BCM under wraps. The statement read, “The proposed acquisition’s culmination hinges on standard closing prerequisites, encompassing the acquisition of necessary regulatory green lights. The transaction’s financial intricacies remain undisclosed.”
Simultaneously, Kraken is navigating legal waters in Australia concerning its margin trading offering. Recent revelations indicate that The Australian Securities and Exchange Commission (ASIC) has initiated legal proceedings against Bit Trade, Kraken’s service provider for Australian clientele. The contention revolves around Kraken’s alleged oversight in establishing a “target market determination” prior to product launch.
This development aligns with the broader European regulatory sentiment to fortify crypto regulations. A notable instance is the endorsement of the Markets in Crypto-Assets (MiCA) legislation by 27 European finance ministers, indicating their approval inclination. These regulations primarily target tax-related ambiguities in the crypto realm, with an implementation timeline set for July 2024.
In related news, BeInCrypto recently highlighted eToro’s regulatory clearance in the European Union, marking its registration as a Crypto Assets Service Provider (CASP) under the Cyprus Securities and Exchange Commission (CySEC).
Contrasting the regulatory landscape, while the U.S. grapples with Bitcoin ETF launches, Europe recently celebrated its inaugural Bitcoin ETF listing on the Euronext Amsterdam stock exchange.
