UK digital asset exchange Archax may acquire Spanish broker King & Shaxson Capital Markets to expand into Europe.
King & Shaxson Capital Markets (KSCM), a Madrid-based brokerage firm, has consented to be acquired by Archax, a cryptocurrency exchange licensed in the United Kingdom. The relocation is a component of the organization’s endeavors to broaden its business offerings beyond the United Kingdom to other regions of Europe.
The company announced on Thursday that the acquisition is contingent upon the approval of Spanish financial regulators. Upon approval, KSCM will be rebranded as “Archax Markets Europe, SA” to function as the company’s European subsidiary.
Archax will offer trading and custody services to customers in the European Union
Archax intends to provide various services through the organization, although the agreement’s specifics were not disclosed. The exchange, registered with the UK Financial Conduct Authority (FCA), will offer regulated brokerage and trading services to consumers in the EU through its current platform, Multi-Lateral Trading Facility (MTF), by local regulations. Additionally, the organization will offer consumers custody services and crypto derivatives.
Archax is also preparing to capitalize on KSCM’s reputation and presence as a regulated broker to establish a strong presence in the EU market with its diverse product line in anticipation of the impending landmark EU regulation, the Market in Crypto Asset (MICA).
Archax has prioritized the expansion into the EU, particularly in light of the obstacles that Brexit has imposed on UK financial firms’ access to European markets. Graham Rodford, the CEO and founder of the company, stated that the anticipated acquisition is a critical stage in establishing a regulatory presence in the EU.
“The Archax strategy has always been to broaden its regulatory footprint globally, with the EU region being paramount to us in the post-Brexit era.” Rodford stated, “This acquisition broadens and improves our access to permissions within the EU region, complementing those we possess with the FCA in the UK.”
Not the First
According to King & Shaxson, the parent company of KSCM, the agreement and potential sale of the company will enable the business to concentrate on its primary fixed-income products.
“King & Shaxson is delighted to have agreed with the Archax Group to sell its Spanish subsidiary.” Marc Dodd, CEO of King & Shaxson, stated, “This sale will enable us to develop further and broaden our core offering in international fixed-income products through both our agency broker and UK MTF.”
Archax is one of many crypto-native companies interested in gaining a foothold in the EU market. Coin Meester (BCM), a brokerage firm domiciled in the Netherlands, was acquired by Kraken in September. The company stated that the agreement enables it to expand its European presence while simultaneously adhering to its obligations as a virtual asset service provider (VASP) licensed in France and Poland.
Robinhood also disclosed in July that it had agreed to acquire Bitstamp, a prominent crypto exchange in the industry, as part of its EU expansion. The transaction was assessed at $200 million.
