Kraken Expands Its Presence in Europe with Acquisition of Dutch Crypto Broker Coin Meester
Date: 2024-09-24 Author: Gabriel Deangelo Categories: BUSINESS
The acquisition, completed on Tuesday, is an important step in Kraken’s strategy to strengthen its position in Europe, as outlined in a blog post by the exchange.
With the acquisition of BCM, Kraken aims to strengthen its position in the Dutch market and establish itself as a registered virtual asset service provider (VASP) in key European countries, including France and Poland. “Completing the acquisition of BCM is an important milestone in our European expansion, allowing us to leverage our strong position and market leadership in euro volume and liquidity to significantly increase our market share,” said Brian Gahan, Managing Director of Kraken Europe.
Preparing for MiCA Regulation
The move comes as the European crypto market prepares for the implementation of the new Markets in Cryptoassets Regulation (MiCA), which is expected to bring stricter regulatory standards across the region. Kraken has been aggressively expanding its operations in Europe over the past two years, offering VASP services directly or through partnerships in countries including Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands.
“We are one of the few in Europe that can combine global scale with compliance and superior customer service,” Gahan added.
With the European crypto market fragmenting, Kraken is looking to leverage its global scale and extensive product offering to capture more market share amid rising costs and increasing competition.
Strategic Sports Partnerships
In addition to its expansion efforts, Kraken has also strengthened its market presence through strategic sports partnerships. The exchange has become the official crypto and Web3 partner of Tottenham Hotspur and Atletico Madrid football clubs. Starting from the 2024 season, Kraken’s logo will be featured as the official partner on the sleeves of both clubs’ men’s and women’s team uniforms.
Kraken Responds to SEC Allegations
Most recently, Kraken responded to allegations from the U.S. Securities and Exchange Commission (SEC) that the exchange violated federal securities laws. The SEC claims that several digital assets offered by Kraken should be classified as unregistered securities. Kraken, in turn, has denied the allegations, arguing that the assets in question do not meet the legal criteria for being considered securities.
Meanwhile, Kraken has faced a legal setback in Australia. Last month, the Federal Court ruled against Bit Trade, a subsidiary of Kraken's parent company Payward Incorporated, saying the platform had breached section 994B(2) of the country's Corporations Act since October 2021. Crypto exchange Kraken acquired Bit Trade in 2020 to provide digital asset services in Australia.
