Kraken acquires Netherlands’ oldest crypto broker to expand Dutch footprint

Crypto exchange Kraken is expanding its presence in the Netherlands by acquiring the country’s oldest registered crypto broker.

The acquisition, announced on September 24, allows Kraken to strengthen its position in the Dutch market and operate with Virtual Asset Service Provider (VASP) licenses in France and Poland.

Coin Meester, also known as BCM, is one of the Netherlands’ most established crypto firms and is also its oldest.

Over the next few months, BCM clients are expected to gain access to more than 200 cryptocurrencies offered by Kraken alongside the platform’s liquidity, top-tier security standards, and round-the-clock local-language support, the announcement added.

The move is part of Kraken’s broader efforts to extend its European footprint.

According to Brian Grahan, Kraken’s managing director for Europe, the acquisition is a key step in their expansion strategy.

He added that Kraken is one of the few European exchanges that can combine a “compliant offering” with a global scale, benefiting their clients with better trading and investing opportunities.

Meanwhile, Kraken is the third crypto exchange for the Netherlands to set foot in the nation this year. In June, OKX announced the launch of its centralised exchange and a web3 wallet in the nation. Prior to that, crypto exchange ByBit was given the green light to service the Dutch.

Kraken’s acquisition of BCM comes just ahead of the full enforcement of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, set for Dec. 30.

MiCA, which was first introduced in May 2023, aims to put in place a complete regulatory environment for the crypto industry across Europe, focusing on investor protection and preventing market manipulation.

Specifically, the framework imposes stringent rules on stablecoin usage, including limits on non-euro-denominated stablecoins used for transactions exceeding €200 million or more than 1 million daily transactions.

Kraken has ramped up its expansion across Europe in the last two years to align with the evolving regulatory landscape.

The exchange currently holds VASP licenses directly or through partnerships in major markets such as Germany, Spain, Italy, Belgium, Ireland, and the Netherlands.

Legal troubles follow Kraken

Despite its growing success in Europe, Kraken has faced regulatory hurdles in other parts of the world. 

In Australia, the company has been involved in a legal battle with the Australian Securities and Investments Commission (ASIC).

The dispute, which started last year, centres on allegations that Kraken’s subsidiary, Bit Trade, failed to comply with the Design and Distribution Obligations (DDO) under the Corporations Act.

ASIC claimed that Kraken’s fiat margin trading product was operating without proper authorisation, as it allowed users to access credit without meeting legal requirements.

In late August, the Federal Court ruled against Bit Trade, finding that it had breached section s994B(2) of the Corporations Act.

Following the ruling, the company had to make adjustments to ensure its margin trading services meet regulatory standards in Australia.

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