Kraken will acquire a Dutch crypto broker BCM as part of its European expansion
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US-headquartered crypto exchange Kraken continues with its plans to expand into new European markets, and as part of the expansion, the platform revealed its plans to acquire Coin Meester B.V. (BCM).
BIG NEWS! 📣
We’re excited to announce our plans to acquire Dutch crypto broker BCM @bcmtodaycom!
This is another important step in our ongoing commitment to growth in Europe and to bringing Kraken’s offering to more people worldwide.
More details ➡️ https://t.co/HkRRkLpGq4 pic.twitter.com/pzdQh2tAkn
— Kraken Exchange (@krakenfx) October 5, 2023
The importance of BCM acquisition
BCM is a Dutch cryptocurrency broker whose acquisition will allow Kraken to move forward with its plans to increase its presence in Europe. The broker was founded in 2017, making it one of the oldest crypto brokers in the Netherlands.
The company offers a number of different crypto-related services, including buying, selling, and staking digital assets. As such, it offers access to more than 170 different cryptocurrencies, as well as local funding rails.
Commenting on the exchange’s intention, its CEO, David Ripley, said in Kraken’s official statement that the Netherlands represents one of the most advanced economies in the world. It has a well-established culture of innovation, and there is a high level of cryptocurrency adoption among its citizens.
“This makes it a key market for us in our European expansion plans. The acquisition of BCM will give Kraken a sizable position in the Dutch market and will allow BCM’s clients to benefit from an even more robust product offering.”
We're going to make things even better for our European customers! 💜
— Kraken Exchange (@krakenfx) October 5, 2023
Kraken’s expansion into Europe and traditional markets
Interestingly, Kraken’s intention to expand operations in Europe came at the same time as the Markets in Crypto Assets (MiCA) regulatory framework introduced by the European Commission. The framework is set to provide a conducive environment for crypto industry participants, allowing them to invest throughout the region while also offering competitive crypto services and products to consumers.
Before making a move to enter the Netherlands, Kraken received an E-Money Institution (EMI) license in Ireland. This took place in September, which is also when the exchange officially registered with the Bank of Spain, becoming a virtual asset service provider (VASP).
The combined force of these regulatory authorizations represents a major milestone for Kraken,, and the exchange’s expansion into European markets. From here on, Kraken will be able to extend its crypto services even further throughout the EU.
Meanwhile, back in the US, the exchange ventures into traditional markets by offering trading services for US-listed stocks and ETFs. This allows the platform to diversify its offering and move beyond crypto assets alone.
For now, these services are not live yet, but Kraken is set to introduce them at some point in 2024. The company already has the necessary licenses for these products, although i is still waiting for FINRA’s broker-dealer license in the US.
