Kraken, one of the world’s leading cryptocurrency exchanges, has expanded its European presence by acquiring Coin Meester B.V. (BCM), a prominent crypto broker in the Netherlands. The acquisition, finalized on Tuesday, marks a significant milestone in Kraken’s strategic push to strengthen its operations across Europe.
In an official blog post, Kraken announced that the deal will allow it to solidify its position as a leading Virtual Asset Service Provider (VASP) in key European markets, including France and Poland, alongside the Netherlands. Kraken’s Managing Director for Europe, Brian Gahan, emphasized the importance of the acquisition, stating that it enhances Kraken’s ability to grow its market share in Europe by leveraging its existing euro volume and liquidity dominance.
Kraken’s European Expansion in Anticipation of MiCA Regulations
Kraken’s expansion efforts come as the European crypto market prepares for the upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA), which is expected to enforce stricter compliance requirements across the region. Over the past two years, Kraken has been actively extending its VASP services throughout Europe, either directly or through partnerships in countries like Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands.
“We are one of the few companies in Europe capable of combining global scale with a compliant and superior client experience,” Gahan added, underlining Kraken’s intent to use its global resources to expand its market share amid rising competition and costs in the crypto space.
Kraken’s Broader Expansion Strategy: Sports Partnerships and Brand Presence
Beyond regulatory expansion, Kraken has bolstered its brand through strategic partnerships with major European sports teams. In the 2024 season, Kraken will become the Official Crypto and Web3 Partner for two prominent football clubs: Tottenham Hotspur in the UK and Atlético de Madrid in Spain. Kraken’s logo will be featured on the sleeves of both clubs’ men’s and women’s teams, marking a significant brand presence in the sports world.
Kraken’s Response to SEC Allegations and Legal Challenges in Australia
While Kraken has made significant strides in Europe, it continues to face regulatory scrutiny in other regions. Recently, the U.S. Securities and Exchange Commission (SEC) accused Kraken of offering digital assets that should be classified as unregistered securities. Kraken has denied these claims, arguing that the assets in question do not meet the legal definition of securities.
Additionally, Kraken faced a legal setback in Australia. In August 2024, the Federal Court ruled that Bit Trade, a subsidiary of Kraken’s parent company Payward Incorporated, breached the country’s Corporations Act since October 2021. Kraken had acquired Bit Trade in 2020 to expand its crypto services in the Australian market.
Despite these challenges, Kraken remains committed to its global expansion strategy, continuing to strengthen its operations and brand presence in Europe and beyond.
