Kraken is the latest crypto exchange to move into a new market after gaining regulatory approval to operate in the Netherlands.
The company's virtual asset service provider (VASP) registration with the Dutch Central Bank allows it to offer its products to retail clients and professional traders there, the company said Thursday.
The Netherlands has โthe highest fintech adoption rate among developed economies,โ Kraken saying in a blog post. According to the exchange, approximately 20% of Dutch citizens own cryptocurrencies.
The registration comes after Kraken said in October that acquire Dutch cryptocurrency broker Coin Meester BV (BCM).
"The European crypto services market is highly fragmented and we see significant consolidation opportunities to strengthen our position in the region." Kraken CEO David Ripley said at the time.
Cryptocurrency exchanges have flocked to Europe and elsewhere amid an uncertain regulatory environment in the US for such entities.
Read more: Coinbase is stepping up its global efforts with โforward-thinking regulatorsโ
EuropeIn particular, it has become an attractive option for crypto exchanges to establish themselves ahead of the implementation of Crypto Asset Markets (Mica) regulation.
Under MiCAโ approved last April โ Cryptoasset service providers wishing to provide services to clients in the European Union must obtain licenses from national authorities. The framework is expected to come into force at the end of 2024.
Coinbase selected Ireland as its โEU MiCA hubโ in October. Kraken received an EU electronic money institution license from the Central Bank of Ireland and a VASP registration from the Bank of Spain last year.
Read more: Why crypto companies are flocking to Ireland before MiCA
Outside Europe, competing cryptocurrency exchange OK It also expanded to a new market earlier this week.
The company's new Argentine platform allows cryptocurrency trading and betting for users in South American countries.
Argentine banking giant Banco Galicia added cryptocurrency trading to its investment platform in 2022. The country's people most recently elected Javier Milei, a libertarian who has expressed support for bitcoin.
โConsumer demand for cryptoassets continues to rise as innovations in the country evolve at an astonishing pace,โ OKX President Hong Fang said in a statement. "It's that combination of an established crypto foothold and rapid evolution that makes Argentina so exciting as our next market."
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