Kraken Acquires Dutch Broker BCM in Bold European Expansion

Kraken’s acquisition of the Dutch broker company is a crucial component of the exchange’s plan to expand throughout Europe before the MiCA rule is implemented.

As part of its strategic acquisition plan, Kraken has added another location in Europe.

The cryptocurrency exchange has declared the completion of its acquisition of Coin Meester (BCM), one of the first licensed cryptocurrency brokerage companies in the Netherlands.

With the purchase, Kraken is now growing its company and presence in the Netherlands and holds registered virtual asset service provider (VASP) licenses in Poland and France.

According to Brian Grahan, managing director of Kraken for Europe, the acquisition represents a significant turning point in the company’s European expansion plans. In a statement dated September 24, Grahan wrote:

“We are one of the very few in Europe that can combine global scale with a compliant offering and a superior client experience. Our clients stand to benefit as we empower them with the premium trading and investing experiences needed to unlock crypto’s full potential.”

The Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for the cryptocurrency business, is scheduled to take effect on December 30. The acquisition occurs just before the bill’s adoption.

Kraken keeps growing over Europe despite MiCA laws.

Over the last two years, Kraken has expedited its European expansion in front of the MiCA regulatory environment.

Kraken may now provide regulated VASP services in Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands directly or through its current relationships.

The “highly fragmented” European cryptocurrency sector is anticipated to undergo some consolidation in the upcoming years due to the intensifying competition.

According to Gahan, Kraken now has a chance to grow its market share in Europe.

“The completion of the BCM acquisition is a key milestone in our European expansion, allowing us to leverage our strong footprint and market-leading position in euro volume and liquidity to significantly grow our market share in the years ahead.”

More cryptocurrency companies are coming to Europe.

Compliance experts believe that the impending MICA bill, which would establish the European Union as the first jurisdiction with a comprehensive regulatory framework for digital assets, could represent a turning point in the history of cryptocurrency regulation.

Other leading cryptocurrency companies have also expressed interest in the advantageous legislation.

Coinbase chose Ireland as its European center in October 2023, allowing it to open offices in the EU before the MiCA system was fully implemented.

According to CoinMarketCap data, Coinbase is presently the second-largest centralized cryptocurrency exchange (CEX) by trading volume, and Kraken is currently ranked sixth.