Crypto.com secures EU license to launch crypto financial derivatives

Crypto.com, a leading mobile-first crypto exchange and payment platform, has secured a Markets in Financial Instruments Directive (MiFID) license, enabling it to offer cryptocurrency financial derivatives within the European Economic Area (EEA). This follows its earlier in-principle approval for operation across the EU under the Markets in Crypto-Assets (MiCA) license, received in mid-January. The announcement underscores Crypto.com’s strategic expansion into European markets and its commitment to regulatory compliance. The company’s CEO, Kris Marszalek, expressed enthusiasm about providing expanded services to European customers.

This MiFID license acquisition builds upon Crypto.com’s recent acquisition of A.N. Allnew Investments, a Cyprus-based trading services firm, approved by the Cyprus Securities and Exchange Commission (CySEC). This strategic acquisition mirrors a trend among crypto entities seeking MiFID licenses through acquisitions of established Cypriot financial firms. Kraken, for instance, recently launched regulated derivatives trading utilizing its MiFID II-regulated entity, Payward Europe Digital Solutions.

The surge in interest in crypto derivatives is evident in recent industry activity. Coinbase’s acquisition of Deribit, one of the world’s largest crypto derivatives trading platforms, exemplifies this trend, with CEO Brian Armstrong indicating a continued focus on mergers and acquisitions. Gemini has also received regulatory approval to expand its crypto derivatives trading in Europe. Even decentralized finance (DeFi) platforms are entering the space, with Synthetix planning to re-acquire the crypto options platform Derive.

Crypto.com’s expansion strategy involves a series of acquisitions, including Fintek Securities, Charterprime, Orion Principals, and SEC-registered broker-dealer Watchdog Capital, demonstrating a proactive approach to market consolidation and regulatory compliance. The company’s success in obtaining both MiCA and MiFID licenses positions it favorably within the evolving European regulatory landscape for cryptocurrency services. The increased availability of regulated crypto derivatives reflects a broader industry trend towards greater compliance and institutional adoption.