UK-Regulated Crypto Exchange Archax Expands into European Union through Acquisition of Spanish Broker King & Shaxson Capital Markets
Archax, a leading UK-regulated crypto exchange and custodian, has reached an agreement to acquire Spanish broker King & Shaxson Capital Markets (KSCM), marking a significant expansion into the European Union. This strategic move comes as the trading bloc’s Markets in Crypto-Assets Regulation (MiCA) rules take effect on December 30th.
Background of King & Shaxson Capital Markets
King & Shaxson Capital Markets was founded in Madrid, Spain in 2019 with a focus on serving pan-European institutional clients. The company has established itself as a reputable broker, leveraging its expertise to provide exceptional services to clients across the continent. Following the acquisition, KSCM will become a wholly owned subsidiary of Archax, enabling both entities to leverage each other’s strengths and capabilities.
Strategic Acquisition by Archax
The acquisition is a pivotal step in Archax’s global expansion strategy, with the EU region being a prime target following Brexit. By acquiring KSCM, Archax aims to extend its existing brokerage, multilateral trading facility (MTF), and custody services into Europe while adding crypto derivatives to its permissions. This move will enable Archax to capitalize on the growing demand for cryptocurrency-related services in the EU.
Impact of MiCA Regulations
The Markets in Crypto-Assets Regulation (MiCA) is a crucial development that has significant implications for the European Union’s crypto market. Scheduled to take effect on December 30th, MiCA will introduce stringent regulations and guidelines governing the trading of cryptocurrencies in the region. The stablecoin provisions, which came into effect in June, have already set the stage for a more comprehensive regulatory framework.
Archax CEO Comments on Acquisition
Graham Rodford, CEO and co-founder of Archax, commented on the acquisition: "The Archax strategy has always been to expand our regulatory footprint globally, with the EU region being of prime importance for us, post-Brexit. This acquisition expands and enhances our access to permissions within the EU region, building on those we hold with the FCA in the UK."
Benefits of Acquisition
The acquisition will bring several benefits to Archax, including:
- Expanded regulatory footprint: By acquiring KSCM, Archax gains access to new permissions and regulatory approvals in the EU.
- Increased market presence: The acquisition enables Archax to establish a stronger foothold in the European Union’s crypto market.
- Enhanced services offerings: With the addition of KSCM’s expertise, Archax will be able to provide a broader range of services to clients in the region.
Conclusion
The acquisition of King & Shaxson Capital Markets by Archax marks a significant milestone in the UK-regulated crypto exchange’s global expansion strategy. As the European Union’s regulatory landscape continues to evolve with the introduction of MiCA rules, Archax is well-positioned to capitalize on emerging opportunities and provide exceptional services to clients across the continent.