Kraken, one of the oldest crypto exchanges in the world, is strengthening its presence in Europe and plans to buy Coin Meester BV (BCM), a Dutch crypto broker.
In a press release on October 5, Kraken said the purchase would give them a “considerable position in the Dutch market” and benefit the broker’s clients. BCM supports over 170 digital assets and is one of the oldest brokers in the country. With the acquisition of BCM, Kraken reaffirms its commitment to expand throughout Europe:
“Kraken is thrilled to announce our planned acquisition of Coin Meester B.V. (BCM) in the Netherlands. The deal highlights our commitment to growing our business in Europe by leveraging our strong financial position and highly competitive product offering.”
Kraken Will Acquire BCM
With the acquisition of BCM, Kraken reaffirms its commitment to expand throughout Europe. The exchange plans to expand its product line, increase liquidity, and improve security for a broader user base. Kraken CEO David Ripley had this to say:
“The Netherlands has one of the most advanced economies in the world, with a well-established culture of innovation and a high level of cryptocurrency adoption. This makes it a key market for us in our European expansion plans. The acquisition of BCM will give Kraken a considerable position in the Dutch market. It will allow BCM customers to benefit from an even stronger product offering.”
BCM co-founder and CEO Mitchell Zandwijken said its existing customer base would benefit from Kraken’s investment and innovations expected as a result of the acquisition:
“Kraken is the pioneer in this field, with a track record spanning more than a decade, making it the perfect steward of our business going forward.”
BCM, which recently rebranded from Bitcoin Meester, was founded in 2017 and offers cryptocurrency trading and staking services including access to over 170 cryptocurrencies.
The company is registered as a Dutch cryptocurrency service provider with De Nederlandsche Bank. Both companies note that the deal is subject to regulatory approvals that will include authorization from the Central Bank of the Netherlands.
Kraken said they are encouraged by the European Commission’s introduction of the Cryptoasset Markets (MiCA) regulatory framework. MiCA seeks to bring comprehensive crypto regulation to the European Union (EU). These rules aim to standardize the regulatory environment for various cryptoassets, including fungible assets such as Ethereum (ETH) or Bitcoin (BTC) and non-fungible tokens (NFTs).
MiCA Rules to Protect Investors and Adjust Stock Markets
However, the European Union has stated that the primary objective of MiCA is to protect consumers and investors by mitigating the risks associated with cryptocurrencies, including hacks and pulls, while promoting financial stability and market integrity.
By setting clear rules and requirements for crypto companies and market participants, MiCA aims to “level the playing field,” even encouraging innovation. MiCA came into force on June 1, 2023. Its full implementation will be in 2024.
As a result of these developments, cryptocurrency companies and exchanges, such as Binance France, are closely watching the implementation of MiCA. In late August, Binance France said the license from the Autorité des Marchés Financiers (AMF) presented “an opportunity to adapt to regulatory challenges and capitalize on opportunities within the European market.”
In Europe, Kraken has already been granted an Electronic Money Institution license from the Central Bank of Ireland, as well as a virtual asset service provider (VASP) registration from the Bank of Spain. With the Irish license, Kraken can offer euro to cryptocurrency trading services in the EU.
By Leonardo Pérez
