Kraken Strengthens European Presence with Acquisition of Dutch Crypto Broker BCM

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Prominent US-based crypto exchange Kraken has recently finalized a strategic acquisition to expand its business into the European markets. The exchange announced that it has successfully acquired Coin Meester, also known as BCM, one of the Netherlands’ oldest licensed crypto brokerage firms.

This acquisition marks a significant milestone for Kraken, which seeks to enhance its operations across Europe and align with the MiCA regulation.

Kraken Focuses on European Expansion Amid Upcoming MiCA Regulations

By acquiring Coin Meester, Kraken gains access to an established client base and operational expertise. The firm also benefits from its deep-rooted understanding of the local regulatory landscape.

Furthermore, this strategic move aligns with Kraken’s broader objectives of providing a more comprehensive range of services. It also helps reinforce the company’s competitive edge in the rapidly evolving crypto market. 

Integrating Coin Meester’s offerings into Kraken’s platform will facilitate a smoother and more efficient user trading experience. 

With this acquisition, Kraken is significantly expanding its European presence, beginning from the Netherlands. It also allows the crypto exchange to expand its operations with a registered virtual asset service provider (VASP) license in France and Poland. 

Brian Grahan, Kraken’s managing director for Europe, emphasized the importance of this acquisition in a September 24 announcement. He highlighted that clients will benefit greatly from this expansion. Grahan noted that Kraken aims to empower its users by providing premium trading and investing experiences. 

Notably, the acquisition occurred just before the full implementation of the markets in the Crypto-Assets (MiCA) bill, which is scheduled to take full effect on December 30.

Kraken Capitalizes on MiCA to Expand European Services

Kraken has expanded its services in Europe as it anticipates the MiCA regulations. With ample collaborations, the exchange operates as a regulated virtual asset service provider in many European countries. Its services extend to France, Spain, Germany, the Netherlands, Poland, Italy, Ireland, and Belgium.

The crypto exchange sees the European crypto market as highly fragmented and will favor its business. Moreover, it aims to leverage the region to consolidate its services in the future amid growing competition.

Further, the MiCA bill will reposition the European Union as the first jurisdiction with comprehensive and clear regulations on digital assets. Crypto compliance analysts see the framework as robust for crypto regulation.

Besides Kraken, some top crypto-related entities also yearn for European expansion due to MICA’s comprehensive guidelines. 

The leading crypto exchange, Binance, has established its presence in Europe. According to the exchange’s post, as of January 2023, the company’s services extend to seven European countries, including Sweden. 

Similarly, the prominent crypto exchange Coinbase adopted Ireland as its European base in October 2023. This move enabled the crypto exchange to establish its office in the EU while waiting to implement the MICA regulations fully.