Archax’s potential purchase of King & Shaxson will enable the company to explore the EU market with crypto trading, custody and derivatives products.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
Archax, a cryptocurrency exchange licensed in the United Kingdom, has agreed to acquire King & Shaxson Capital Markets (KSCM), a Madrid-based brokerage firm. The move is part of the company’s efforts to expand its business offerings outside the British market to other parts of Europe.
In an announcement on Thursday, the company said the acquisition is subject to approval by Spanish financial regulators. If approved, KSCM will be rebranded to “Archax Markets Europe, SA” to serve as the company’s European subsidiary.
While the terms of the deal were not disclosed, Archax aims to offer a series of services through the company. The exchange, registered under the UK Financial Conduct Authority (FCA), will provide regulated brokerage and trading services through its existing platform, Multi-Lateral Trading Facility (MTF), to customers in the EU in compliance with local rules. Additionally, the firm will provide custody services to customers along with crypto derivatives offerings.
Archax is also planning to leverage KSCM’s presence and reputation as a regulated broker to position itself well in the EU market with its range of offerings ahead of the upcoming landmark EU regulation known as the Market in Crypto Asset (MICA).
For Archax, expanding into the EU has been a key priority, especially after Brexit created barriers for UK financial firms accessing European markets. The company’s CEO and founder Graham Rodford, said the planned acquisition is an important step toward securing a regulatory foothold in the EU.
“The Archax strategy has always been to expand its 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,” said Rodford.
Commenting on the agreement and potential sale of KSCM, the company’s parent firm, King & Shaxson, said the deal will allow the business to focus on its core fixed-income products.
“King & Shaxson is pleased to have agreed the sale of its Spanish subsidiary to the Archax Group. This sale will allow King & Shaxson to continue to grow and expand our core offering in international fixed-income products through both our agency broker and UK MTF,” said Marc Dodd, CEO of King & Shaxson.
Meanwhile, Archax is not the only crypto-native firm looking to cut a slice of the EU market. In September, Kraken announced that it had completed the acquisition of Coin Meester (BCM), a brokerage firm registered in the Netherlands. The company said the deal allows it to expand its European presence while maintaining compliance as a virtual asset service provider (VASP) 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.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
