- The third-largest crypto exchange has acquired the Netherlands-based crypto exchange, Coin Meester B.V. (BCM).
- The Australian Securities and Investments Commission filed a civil court penalty action against Kraken’s local arm.
- Kraken’s affiliate exchange BitTrade Pty Ltd, caused over 1160 Australians to burn $12.95 million on their margin products.
2023 has been one of the most fruitful and worst years for the crypto industry. The rate of stablecoin adoption and crypto payment services is at an all-time high, with organizations like Mastercard, Visa, and PayPal pioneering the movement. In addition, Africa steadily regains its former glory, with South Africa signing the continent’s first crypto regulatory framework. Despite these significant feats, the crypto industry has also faced trying times, with the US crypto industry declining. Major corporations like Binance, Coinbase, and Kraken Exchange have chosen to abandon their hostile crypto environment, causing a sharp decline in activities.
In recent developments, the third-largest exchange, Kraken Exchange, has set its site for Europe’s crypto industry. Kraken has announced its plans to acquire Coin Meester B.V. (BCM), a crypto broker based in the Netherlands. If this acquisition successfully pulls through, it would open up Kraken’s reach, sheltering it from the grasp of the US’s regulatory body.
Kraken Exchange dances with corporate suicide.
After the tragic events of the FTX crash, the entire ecosystem is on high alert. Governments, traders, and regulatory bodies took a step back from the industry, significantly damaging its progress. Its effect rippled across the entire ecosystems, affecting affiliate entities and even emerging startups. In less than a year, the crypto industry has seen one of the highest losses since its founding in 2009.
Despite this, several vital ecosystems have managed to take positive steps, all but one, in the US’s crypto ecosystem. Since the crash, the US SEC has doubled down on its vague crypto regulatory framework, targeting all those who do not comply. Initially, their numerous crypto lawsuits were to prevent a similar FTX crash, but recently, their efforts of protection have borderline towards control.
After culling its crypto ecosystem of suspicious activities, the US SEC aimed their firepower toward the top crypto titans. Unfortunately, on this front, Kraken Exchange was the first to suffer due to its vague crypto regulatory framework. According to the SEC, Kraken Exchange had violated its crypto regulatory framework through its staking-as-a-service program.
Kraken Exchange had offered and sold investment contracts without registering with the SEC, which was a clear violation. According to the SEC, “When investors provide tokens to staking-as-a-service providers, they lose control of those tokens and take on risks associated with those platforms, with very little protection. Whether it’s through staking-as-a-service, lending, or other means, crypto intermediaries, when offering investment contracts in exchange for investors’ tokens, need to provide the proper disclosures and safeguards required by our securities laws.”
Unfortunately, this case caused Kraken to part with $30 million in fines and shut down its staking program. This significantly brought the third-largest exchange down a peg, especially since it struggled to maintain its position. The US’s crypto industry became too hostile for it to operate. Furthermore, the lawsuit would damage Kraken’s reputation in other ecosystems.
For instance, Australia sued the crypto titan for refusing to abide by its crypto regulatory framework. The Australian Securities and Investments Commission filed a civil court penalty action against Kraken’s local arm. According to the lawsuit, Kraken’s affiliate exchange BitTrade Pty Ltd, caused over 1160 Australians to burn $12.95 million on their margin products. Their feature did not comply with their crypto regulatory framework, further damaging their reputation.
Thus, to salvage what credibility they had, Kraken sought to expand its horizon away from the US’s crypto industry.
Kraken Exchange acquires a new firm in Europe’s crypto industry.
Kraken Exchange recently announced its intent to enter Europe’s crypto industry a few months back. The third-largest crypto exchange has acquired the Netherlands-based crypto exchange, Coin Meester B.V. (BCM). According to the report, Kraken and BCM have announced an upcoming acquisition following positive milestones in Europe’s crypto industry.Recently, the European Union has introduced a new crypt regulatory framework called the Markets in Crypto-Assets(MiCA) regulatory policy. This new milestone is among several attempts to enter Europe’s crypto industry. Within the year, Kraken’s exchange has acquired several Virtual Asset services Provider licenses to operate in Ireland, Italy, and Spain.
Also, the Read Prank call reveals digital Euro CBDC plans.
According to Kraken CEO David Ripley, acquiring Coin Meester B.V. will significantly strengthen its position in Europe. Furthermore, its wide array of services will propel the Netherlands’ economy through its international market. He said, “The acquisition of BCM will give Kraken a sizable position in the Dutch market and allow BCM’s clients to benefit from an even more robust product offering.“
With Kraken Exchange acquiring Coin Meester B.V., Europe’s crypto industry will significantly increase in the coming years. Unfortunately, the same cannot be said for the US’s crypto industry. Its numerous lawsuits and vague crypto regulatory framework have deterred many from engaging with its market.
Several crypto titans, including Binance, have significantly reduced their efforts within the region, citing its unfavorable take towards digital currency. If its regulatory body does nothing, its crypto trading volume may fall below average. With Africa’s recent positive take, it might be time to overthrow the US’s crypto industry.