Crypto.com has gained a MiFID license to offer regulated crypto derivatives in the EEA, expanding in Europe after earlier MiCA approval.
Crypto.com, a mobile-first crypto exchange and payment platform, has obtained a license that authorizes it to provide cryptocurrency financial derivatives in the European Economic Area.
By an announcement made on May 21, Crypto.com has obtained a Markets in Financial Instruments Directive (MiFID) license.
Kris Marszalek, co-founder and CEO of Crypto.com, stated, “We have already increased our brand presence in Europe since obtaining our MiCA license. We are excited to offer our regional customers more opportunities to interact with our platform through these new offerings.”
The announcement was made in mid-January in response to Crypto.com’s in-principle sanction to operate throughout the European Union under a Markets in Crypto-Assets (MiCA) license.
The Cyprus Securities and Exchange Commission (CySEC) granted regulatory approval to the company to acquire Cyprus-based trading services firm A.N. Allnew Investments.
Crypto.com did not promptly address Cointelegraph’s inquiry for commentary.
Strategy That Is Widely Used
The company is not the first crypto entity to acquire a MiFID license by developing a financial firm based in Cyprus.
Kraken, a cryptocurrency exchange, announced on May 20 that it would implement regulated derivatives trading on its platform under the European Union’s Markets in Financial Instruments Directive (MiFID II).
Kraken, like Crypto.com, utilized Payward Europe Digital Solutions, a Cyprus-based entity subject to MiFID II regulation, to provide its derivatives.
The launch was preceded by Kraken’s acquisition of NinjaTrader, a futures trading platform, in May.
The company’s first-quarter revenue increased by 19% year-over-year to $471.7 million.
Crypto Derivatives Are Currently In Vogue
Brian Armstrong, CEO of Coinbase, recently announced that the company will persist in pursuing merger and acquisition opportunities following the acquisition of Deribit, a crypto derivatives platform.
After agreeing to acquire Deribit, one of the world’s largest crypto derivatives trading platforms, the publicly listed US crypto exchange made the comments earlier this month.
Gemini, a prominent cryptocurrency exchange, has recently obtained regulatory approval to broaden the trading of crypto derivatives throughout Europe.
Finally, Synthetix, a decentralized finance platform, intends to expand its crypto derivatives portfolio by repurchasing Derive, a crypto options platform.
Crypto.com has acquired a significant number of companies.
These include Fintek Securities, Charterprime, Orion Principals, and SEC-registered broker-dealer Watchdog Capital.
