In an increasingly regulated EU, Kraken has secured an important foothold in the Netherlands by purchasing the BCM Crypto Exchange.
Having gained a crucial license base in the country, Kraken is now eying a greater share of the EU crypto market.
In the past, a patchwork of different crypto licensing regimes existed across the EU. However, under the new Markets in Crypto Assets (MiCA) framework, crypto exchanges only need a license in one member country to serve customers across the bloc.
Although MiCA means crypto exchanges must only register in one country to do business in the EU, the new regulation has hardly subdued their expansion across the continent.
When announcing its intention to acquire BCM, Kraken specifically cited MiCA as a reason behind its decision to accelerate its European growth plans.
According to a Kraken press release , MiCA “allows industry players to confidently invest in the region.” The exchange is “committed to growing our business in compliance with European regulations,” the release added.
Far from encouraging crypto firms to concentrate their EU operations in a single location, in the case of Kraken, MiCA appears to have encouraged the firm to pursue even more license registrations.
“In addition to our VASP licenses in Ireland, Italy, and Spain, we are actively pursuing registrations in other European markets,” the company said.
Founded in 2017, BCM was previously known as Bitcoin Meester but recently rebranded to better reflect the 170+ coins listed on the platform.
Through its acquisition of the Netherlands-based firm, Kraken will be able to strengthen its position in the Dutch market, while creating a solid foundation for future growth.
Commenting on the deal, Kraken CEO David Ripley said, “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. The acquisition of BCM will give Kraken a sizable position in the Dutch market,” he added.
For now, BCM users won’t experience any immediate changes while the deal goes through the necessary regulatory approvals. In the long term, however, it seems likely that Kraken will look to migrate BCM’s customers to its own platform.