Archax, a UK-based cryptocurrency exchange and custodian, has announced its acquisition of Spanish broker King & Shaxson Capital Markets (KSCM) as part of its expansion into the European Union. This acquisition comes at a crucial time as the EU’s Markets in Crypto-Assets Regulation (MiCA) rules are set to take effect soon.
The deal is still pending regulatory approval in Spain, but once completed, KSCM will operate as a subsidiary of Archax. This strategic move will allow Archax, which is regulated by the Financial Conduct Authority (FCA), to broaden its services in Europe by offering brokerage, multilateral trading facility (MTF), and custody services, as well as adding crypto derivatives to its offerings.
Graham Rodford, CEO and co-founder of Archax, emphasized the importance of expanding their regulatory footprint globally, especially in the EU post-Brexit. This acquisition will enhance their presence in the EU region, complementing their existing permissions in the UK.
The MiCA regulations, scheduled to come into effect on December 30th, will have a significant impact on the cryptocurrency industry in Europe. By acquiring KSCM, Archax is positioning itself to navigate these regulatory changes effectively and continue providing top-notch services to its clients across the continent.
In other news, short-term holders in the crypto market are showing signs of panic following Bitcoin’s recent drop, with $295 million in long liquidations reported. This volatility underscores the importance of having a secure and reliable platform like Archax for trading and custody services.
Additionally, Robinhood’s recent earnings report and the surge in ETF inflows signal a bullish trend in the market, further highlighting the need for reputable financial service providers like Archax to support investors in navigating these dynamic market conditions.
As Archax expands its reach into Europe through the acquisition of KSCM, investors can expect enhanced services and regulatory compliance to meet the evolving needs of the cryptocurrency market. Stay tuned for more updates on how Archax is shaping the future of crypto trading and custody services in the EU and beyond.
