Kraken, a prominent digital asset exchange based in the United States, has announced the acquisition of the Netherlands-based Bitcoin trading platform, Coin Meester B.V. (BCM). The acquisition allows the firm to expand operations in Europe.
The Dutch Exchange Acquisition
According to the official announcement from Kraken on October 5, the acquisition deal signifies the exchange’s commitment to expanding its consumer base outside the United States while leveraging its “strong financial position and highly competitive product offering.” The acquisition is currently pending and has not been finalized.
BCM is a leading digital asset exchange in the Netherlands and was founded in 2017. The firm allows its users to buy, sell, and stake in more than 170 different digital assets. Interestingly, Kraken CEO David Ripley revealed that the proposed acquisition will give his exchange “a sizable position in the Dutch market.”
“The Netherlands has one of the world’s most advanced economies, with a well-established culture of innovation and a high level of crypto adoption. This makes it a key market for us in our European expansion plans,” said Ripley.
Ripley also noted that the huge client base of BCM will also benefit from the “robust product offering” from Kraken.
Evolving Regulatory Framework in Europe
Additionally, the announcement also noted that Kraken’s decision to expand into the European market comes just a few months after the European Commission established the Markets in Crypto-Assets (MiCA) framework in the region.
Related reading : MiCa Regulation Could Lead To Bitcoin Explosion in Europe
As per the U.S.-based exchange, the MiCA framework allows blockchain-focused businesses “to confidently invest in the region and provide consumers access to more competitive products and services.” It was also revealed that Kraken is pursuing registration in other European markets. The exchange currently has VASP registrations in Ireland, Italy, and Spain.
“Kraken is the pioneer in this field with a track record spanning well over a decade, making it the perfect steward of our business going forward,” said BCM CEO Mitchell Zandwijken.
While the European Union has already released the MiCA framework for regulating the blockchain sector, countries like the U.S. are far behind the EU and have yet to release a regulatory framework for blockchain businesses and investors.
Related reading : Coinbase Wins Regulatory Approval From Bank of Spain
Related reading : U.S. Chamber of Commerce Slams SEC for Regulatory Uncertainty
According to a June 2022 report from the digital assets exchange, the growth of the Bitcoin Lightning Network surged 150% in 2021. Interestingly, the Bitcoin Lightning Network has proven to be able to settle payments faster than traditional payment networks such as Visa and Mastercard, as reported previously by BitcoinNews.