Kraken Acquires Dutch Broker BCM to Expand in Europe

BeInCrypto’s detailed Europe Crypto Roundup highlights the latest developments and trends influencing the continent’s cryptocurrency ecosystem. Our reporters cover major markets including Germany, France, and the UK, delivering comprehensive insights into the shifting regulatory landscape, adoption statistics, significant industry events, and market dynamics.

This week’s roundup discusses Societe Generale’s collaboration with Bitpanda, Kraken’s acquisition of a Dutch brokerage to enhance its European presence, and other significant updates.

Dutch Regulator Issues Warning on Crypto Pump-and-Dump Risks

The Dutch Authority for the Financial Markets (AFM) has issued a caution regarding the risks associated with cryptocurrency pump-and-dump schemes, coinciding with forthcoming European Union regulations under the Markets in Crypto-Assets Regulation (MiCA). MiCA, set to take effect on December 30, will explicitly prohibit market manipulation tactics across Europe.

According to an official press release, the AFM will supervise the implementation of these new regulations in The Netherlands. The regulator has investigated numerous pump-and-dump schemes and is prepared to enforce rigorous measures once MiCA is fully operational.

A pump-and-dump scheme refers to the practice of artificially raising the price of a cryptocurrency by disseminating misleading or inflated information. Promoters generally purchase the asset at a low price, create hype to attract public interest, and subsequently sell their stake at the inflated price.

Learn more: What Is Markets in Crypto-Assets (MiCA)?

Hanzo van Beusekom, a board member of the AFM, emphasized that pump-and-dump schemes “erode trust” in the crypto market, which is “crucial for the long-term viability of digital assets.”

Societe Generale Forge Partners with Bitpanda for Euro Stablecoin

Global banking leader Societe Generale has partnered with Bitpanda to enhance the role of stablecoins within the financial ecosystem. This partnership is centered on promoting Societe Generale’s euro-based stablecoin, EUR CoinVertible (EURCV), via its blockchain subsidiary, Societe Generale-FORGE.

Bitpanda will support the mainstream adoption of the EURCV, which will be pivotal in the European cryptocurrency sector. As noted by Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, euro-pegged stablecoins are essential for merging traditional finance with digital currencies.

“Fully regulated stablecoins are the bridge that will make it possible. We will work with Societe Generale-FORGE to bring that future one step closer,” he remarked.

Stablecoins serve as a primary bridge between fiat currencies and the cryptocurrency realm. Providing investors with access to regulated stablecoins is a pivotal step towards attracting greater investment into the crypto market.

Societe Generale’s EURCV stablecoin will comply with MiCA regulations and will be available on Bitpanda’s trading platform. As of 2023, Societe Generale ranks as the world’s 19th largest banking group, managing over $1.7 trillion in assets.

Assetera Launches Secondary Market for Tokenized Real-World Assets on Polygon

Assetera, Europe’s inaugural regulated blockchain-based secondary market for tokenized real-world assets (RWAs), is set to debut on Polygon. Under the oversight of the Austrian Financial Market Authority, Assetera will utilize its own smart contracts on the Polygon blockchain.

The platform will serve retail, professional, and institutional clients, offering tokenized financial instruments such as securities, money market instruments, fund units, and derivatives. Furthermore, Assetera will provide tokenized RWAs like real estate and art.

All trading will occur directly on the Polygon network, employing stablecoins for purchasing, clearing, and settlement through atomic swaps. The platform will function 24/7 without the need for manual intervention.

Learn more: How To Invest in Real-World Crypto Assets (RWA)?

Assetera will accommodate both custodial and non-custodial wallets, with plans to introduce bank-managed wallets. The platform has partnered with Sumsub, Chainalysis, and Fireblocks to ensure compliance with Anti-Money Laundering (AML) regulations.

Kraken Acquires Dutch Broker BCM to Enhance European Growth

Kraken has acquired Coin Meester (BCM), one of the oldest registered crypto brokers in the Netherlands, as part of its strategy to broaden its reach in Europe. This acquisition strengthens Kraken’s foothold in the Dutch market and improves its capabilities to operate under a registered Virtual Asset Service Provider (VASP) license in France and Poland.

Brian Grahan, Kraken’s managing director for Europe, emphasized the significance of the acquisition in a September 24 announcement.

“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,” he stated.

Over the past two years, Kraken has intensified its European expansion efforts, positioning itself for the upcoming regulatory landscape. The exchange can now offer regulated VASP services directly or through partnerships across various countries, including Germany, Spain, Italy, Belgium, Ireland, France, Poland, and the Netherlands.