Kraken Expands European Presence With Acquisition of Crypto Broker BCM

Popular American crypto exchange Kraken has expanded its European presence by acquiring the Netherlands-based crypto broker Coin Meester B.V. (BCM).

Coin Meester B.V. (BCM) touts itself as the Netherlands’ oldest registered crypto broker firm. It facilitates the buying and selling of digital assets. As a broker, BCM acts as an intermediary between individuals and the crypto market, simplifying the trading process for users.

Kraken Acquires BCM

Acquiring BCM is a strategic step for Kraken to broaden its services in Europe, especially in countries where crypto adoption is multiplying.

The crypto exchange announced that it can now offer Virtual Asset Service Provider (VASP) services directly or through a partnership in countries like Germany, Spain, Italy, the Netherlands, Belgium, Ireland, France, and Poland. This expanded reach will allow Kraken to compete more effectively with other global exchanges in these regions.

The acquisition marks a key milestone in Kraken’s European expansion efforts, according to Brian Grahan, Kraken’s managing director for Europe who said:

“The completion of the BCM acquisition is a key milestone in our European expansion, allowing us to leverage our strong footprint and market-leading position in euro volume and liquidity to significantly grow our market share in the years ahead.”

Kraken’s Hurdles with U.S. SEC

Despite the growing popularity of digital assets, Kraken is encountering regulatory challenges in the United States. The Securities and Exchange Commission (SEC) alleges that the crypto exchange has offered investors unregistered securities, violating federal securities laws. The financial regulator has held this claim against multiple crypto-focused platforms in the country.

The SEC argues that these services should be registered as securities, but Kraken has supposedly not complied.

As a result of these allegations, Kraken has encountered fines and increased legal scrutiny in the country. This regulatory pressure may have contributed to Kraken’s effort to expand its operations internationally, particularly in Europe, where it faces fewer restrictions and can continue to grow its business.