The rich gets richer, according to the old saying. In this case, one of the biggest and most widely known crypto exchanges of the world, Kraken, keeps broadening its reach and investing in crypto-related companies to ensure a strong presence in foreign markets, among other things.
Via a press release published on Monday, February 4th, Kraken confirmed that it had acquired another crypto exchange that also happens to function as a futures provider, named Crypto Facilities. The latter is located in the United Kingdom, as opposed to the American-based Kraken.
Entering the European Market
The acquisition has several appealing aspects for Kraken. Not only is Crypto Facilities a fully functional exchange that has been up and running since 2015, but it is also fully regulated by the United Kingdom’s Financial Conduct Authority, a highly favorable development for the US-based platform in its quest to successfully earn a foothold in the European market, which remains very attractive.
The exact amount in which the operation was closed was not made public by either party, but they informed that the number has, at least, nine figures, suggesting a minimum of $100 million.
“We are excited to introduce eligible clients to these industry leading futures and index products,” were the words of Kraken’s CEO Jesse Powell in the press release. The executive added that “over the coming months, our teams will continue to enhance and expand these offerings.”
The Regulating Game
The quest to find uniform criteria to successfully regulate crypto assets in the United States of America has caused numerous exchanges and related platforms to look to international markets with the intention of increasing their reach and bypassing the always limiting American restrictions.
The Bittrex crypto exchange took a similar path in recent weeks, as it launched an international version of its traditional trading platform, effectively separating US-based customers from foreign ones with the intention of offering other types of assets to the latter group.
Crypto Facilities and Kraken have both stated that they are thrilled by the recent events, embracing a focus in the London market. “Crypto Facilities will remain London-based, benefiting from the regulatory oversight of the Financial Conduct Authority, one of the world’s most forward looking and innovation-focused regulators, and reflecting Kraken’s commitment to the UK as the leading financial and cryptocurrency hub in Europe,” the press release expressed.
Whereas Crypto Facilities is fully regulated, the country as a whole is still struggling to find common ground when it comes to legislation. The industry sector is continually criticizing plans that threaten to ban some crypto derivatives.
The nation is, however, highly aware of the existence of cryptocurrencies and their advantages as a mean of investment, according to a survey conducted in December 2018.
A little bit more about Kraken
Kraken is an American cryptocurrency exchange that has been present in the market since 2011. It operates in several countries, among them are the USA, the European Union (EU,) Canada, and Japan. It is the planet’s largest Bitcoin exchange in euro volume and liquidity.
By Andres Chavez