Kraken has formally accomplished its acquisition of Coin Meester B.V. (BCM), one of many Netherlands’ most established crypto brokers.
With this, Kraken tightens its grip additional on the Dutch market and boosts its operations in Europe, what with the upcoming Markets in Crypto-Property Regulation (MiCA).
BCM’s integration will increase Kraken’s capacity to function as a registered Digital Asset Service Supplier (VASP) in France and Poland.
The corporate can now supply VASP providers throughout Germany, Spain, Italy, the Netherlands, Belgium, and Eire too.
The European market is infamous for being extremely fragmented. Rising operational prices and elevated competitors are anticipated to set off additional consolidation within the coming years.
Kraken is banking on that to extend its market share. Brian Gahan, the corporate’s Managing Director for Europe, stated:
“We’re one of many only a few in Europe that may mix international scale with a compliant providing and a superior shopper expertise. Our shoppers stand to learn as we empower them with the premium buying and selling and investing experiences wanted to unlock crypto’s full potential.”
Kraken’s battle with U.S. regulators
The corporate can be entangled in a high-profile lawsuit with the Securities and Trade Fee (SEC). This lawsuit has been hanging over Kraken since November 2023, when the SEC accused the alternate of failing to adjust to U.S. securities legal guidelines.
The SEC claims that the agency has been providing unregistered securities within the type of 11 completely different cryptos, together with Cardano (ADA), Algorand (ALGO), and Solana (SOL).
The SEC goes exhausting, demanding that the corporate cease these alleged violations and return what it calls “ill-gotten good points.”
The company can be searching for further penalties, which could possibly be an enormous monetary setback for the agency if it loses the case.
On September 13, Kraken filed for a jury trial, insisting that it had performed nothing unlawful. The corporate hit again with 18 separate defenses in opposition to the SEC’s accusations.
One in every of their details is that cryptocurrencies don’t fall beneath the standard definition of securities, which might imply they don’t should be registered.
Kraken is leaning closely on this argument, stating that digital belongings lack the essential options of shares, bonds, or different funding contracts.
Kraken’s authorized staff additionally claims that the SEC is violating their First Modification rights. They argue that the SEC is punishing the agency for providing crypto providers with out giving clear regulatory tips.
Kraken says it was by no means given correct discover about what was anticipated of them beneath the legislation, which they declare is a violation of due course of.
