Crypto Exchange Archax to Acquire Spanish Broker King & Shaxson Capital Markets for EU Expansion

by

As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-evolving digital asset landscape, I find myself increasingly optimistic about the strategic moves being made by key players in our industry. The recent acquisition of King & Shaxson Capital Markets (KSCM) by Archax, a UK-licensed cryptocurrency exchange, is a clear indication that the European market is becoming a prime focus for crypto firms.

In simpler terms, Archax, a UK-licensed cryptocurrency exchange, has decided to purchase King & Shaxson Capital Markets (KSCM), a brokerage firm based in Madrid, Spain. This action is one of their strategies to broaden their business services beyond the British market and into other European regions.

On Thursday, the company declared that the acquisition is contingent upon the green light from Spanish financial authorities. Should it receive approval, KSCM will undergo a name change to “Archax Markets Europe, S.A.”, serving as the company’s European affiliate thereafter.

Archax to Provide Trading and Custody Services to EU Customers

Without revealing specifics about the agreement, Archax intends to supply a range of services via their company. This UK Financial Conduct Authority (FCA) registered exchange plans to deliver regulated brokerage and trading opportunities through its current platform, Multi-Lateral Trading Facility (MTF), in accordance with EU regulations. Furthermore, they will offer custody solutions and various crypto derivative products to their clients.

Archax aims to utilize KSCM’s established status as a regulated broker within the European Union (EU) market, bolstering its own position there with its diverse product lineup. This strategic move is intended to ensure Archax’s readiness for the upcoming significant EU regulation, the Market in Crypto Assets (MICA), which is expected to reshape the crypto market landscape within the region.

For Archax, establishing a presence within the EU has been a significant focus, particularly following Brexit which erected hurdles for UK financial companies seeking to engage European markets. The CEO and founder of the company, Graham Rodford, noted that this intended acquisition is a crucial move towards cementing a regulatory foundation in the EU.

Rodford stated that the Archax strategy has consistently aimed at increasing its influence worldwide, particularly focusing on the European Union (EU) following Brexit. This acquisition will broaden and strengthen our permissions within the EU region, complementing those we already have with the Financial Conduct Authority (FCA) in the UK,” Rodford explained.

Not the First

Regarding the proposed acquisition and possible sale of KSCM, King & Shaxson stated that this transaction will enable the company to concentrate on its primary offerings in fixed-income goods.

King & Shaxson is happy to announce that they have reached an agreement for the sale of their Spanish subsidiary to the Archax Group. This transaction enables King & Shaxson to keep expanding and strengthening our expertise in global fixed-income products, both through our brokerage agency and UK MTF (Multilateral Trading Facility), as stated by Marc Dodd, CEO of King & Shaxson.

Simultaneously, Archax isn’t the sole crypto-focused business aiming to penetrate the EU market. In fact, Kraken, another significant player, announced the completion of acquiring Coin Meester (BCM), a Dutch-registered brokerage firm in September. The company stated that this acquisition will help it broaden its footprint across Europe while adhering to regulations as a VASP (Virtual Asset Service Provider) licensed in France and Poland.

In July, Robinhood also revealed that it had agreed to acquire Bitstamp, one of the leading crypto exchanges in the industry, as part of its EU push. The deal was valued at $200 million.

Read More

2024-10-31 18:03