The exchange Archax announces the acquisition of King & Shaxson Capital Markets, a strategic move for the expansion of its crypto services in Europe (EU) in anticipation of the entry into force of the MiCA regulation.
However, the operation is now subject to regulatory approval in Spain. In this article, we see all the details.
Under the new MiCA regulation, the exchange Archax will be able to expand crypto expansion in the EU
Archax, a regulated cryptocurrency exchange based in the United Kingdom, recently announced that it has finalized a agreement for the acquisition of the Spanish broker King & Shaxson Capital Markets (KSCM).
This strategic move aims to increase Archax’s presence in the European Union market. An important step to consolidate its position in the cryptocurrency sector within a regulated context.
The agreement, however, is still subject to regulatory approval by the Spanish authorities, as specified by Archax itself.
With the entry into force of the MiCA regulation (Markets in Crypto-Assets Regulation) in the European Union, the legislative context for activities related to cryptocurrencies is evolving rapidly.
MiCA provides a homogeneous regulatory framework for crypto operators in the EU, ensuring greater transparency and security for investors and companies.
This regulation has been designed to regulate the cryptocurrency industry and create a more stable and reliable environment for all parties involved.
In this direction, the acquisition of KSCM represents an opportunity for Archax to enter the European market and expand its trading, brokerage, and custody services.
Archax is known for being one of the first cryptocurrency exchanges regulated by the Financial Conduct Authority (FCA) in the United Kingdom. This factor has allowed it to establish a solid reputation for security and compliance.
The strategy of Archax aims to extend the offering of its services globally, placing a specific focus on Europe after Brexit.
The decision to acquire King & Shaxson Capital Markets fits perfectly into this framework, allowing Archax to expand its presence in the EU and strengthen its offering in the crypto financial sector.
As stated by Graham Rodford, CEO and co-founder of Archax, the expansion in Europe represents a strategic priority.
The merger with KSCM allows Archax to obtain additional authorizations in the EU and to fully exploit the potential of the MiCA regulation:
“This acquisition expands and improves our access to authorizations within the EU region, building on those we hold with the FCA in the United Kingdom.”
King & Shaxson Capital Markets: a strategic partner
King & Shaxson Capital Markets is an institutional broker based in Madrid, operating since 2019, and specialized in serving institutional clients throughout Europe.
The company quickly gained a prominent position thanks to its expertise in the European market and its ability to offer a personalized service to clients.
Once the acquisition is completed, KSCM will become a wholly owned subsidiary of Archax, integrating the services of the British company with those already provided in Spain and the EU.
Through this acquisition, Archax will be able to offer a wider range of services to its clients, including the trading and custody of cryptocurrencies, and potentially also crypto derivatives, a tool increasingly demanded by institutional investors.
The ability of King & Shaxson to operate in the Spanish market and its know-how in dealing with European institutional clients represent elements of great value for Archax, which will thus be able to accelerate the expansion of its services in the EU area.
The impact of the MiCA regulation
The MiCA regulation will officially come into effect starting from December 30, with some provisions, such as those on stablecoin, already active since last June.
The main objective of MiCA is to create a unified and regulated market for cryptocurrencies in Europe, establishing common rules for all EU member countries.
This new regulatory framework encourages the adoption of cryptocurrencies among institutional clients, as it provides greater clarity and protection for the parties involved.
Archax, thanks to its already established compliance with the FCA, is in an ideal position to quickly align with MiCA regulations and respond to the growing demand for regulated crypto services.
The regulation will also allow Archax to offer innovative financial products, such as crypto derivatives, in a secure manner and in compliance with European directives. Thus further expanding its portfolio of services.
In other words, in addition to strengthening its service offering for institutional clients, Archax will be able to leverage the favorable regulatory environment to attract a growing number of investors.
Which will be reassured by the transparency and security offered by the new MiCA rules.
The expansion in Europe also allows Archax to mitigate the impact of post-Brexit regulations, which have created some difficulties for British financial companies interested in operating within the EU.
Through King & Shaxson, Archax now has a direct foothold in the European market, making the company more resilient and better prepared to navigate international regulatory complexities.
