Kraken has completed its purchase of Coin Meester B.V. (BCM), one of the Netherlands' oldest regulated cryptocurrency dealers.
Kraken's European development plan is advancing as it prepares for the Markets in Crypto-Assets Regulation (MiCA) framework, which is expected to be fully implemented by December 30, 2024.
BCM's purchase increases Kraken's Netherlands presence and offers it an advantage in VASP services in France and Poland.
Brian Gahan, Kraken's managing director for Europe, said this transaction is crucial to the company's European market share goals. He said that Kraken can grow using its strong presence, euro volume, and liquidity.
In the next months, Kraken will offer BCM customers approximately 200 coins. Kraken's liquidity, security, and customer support will also be available after this takeover. As Gahan said:
"Kraken is one of the few European cryptocurrency exchanges with global reach, compliance, and a great customer experience."
In preparation for MiCA, Kraken's European expansion plan has increased over the previous two years, including its debut into the Dutch market.
In Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands, Kraken provides VASP services directly or via partnerships.
The exchange has positioned itself to navigate the tough regulatory situation and profit from the MiCA law's potential, ensuring its continuing importance in the European crypto business.
This purchase comes as the EU prepares for a more comprehensive digital asset regulatory framework, with the MiCA regulation expected to tighten requirements. Due to the MiCA framework's favorable regulatory environment, several other large crypto businesses are aiming to develop in Europe.
Since Coinbase picked Ireland as its European headquarters, it could start operations before the MiCA was fully implemented.
Though fragmented, the European crypto business is projected to consolidate in the future years due to legislative changes.
Kraken can expand its regional market share and impact in this setting. In a sector where smaller enterprises are struggling, Kraken's worldwide reach and compliance give it an edge.
CNF has reported that Kraken has demanded a jury trial in its SEC lawsuit. Kraken denies the SEC's accusations that it commingled user funds and failed to register as a broker or exchange.
