Crypto currency exchange Crypto.com has announced that it has purchased Allnew Investments and thus obtained the license required to provide derivative financial products in the European Economic Area. According to a statement made by the Company, the Markets in Financial Instrues Direction (MIFID) licensed by AllNew Investments, Cyprus Securities and Stock Exchange Commission (CYSEC). This license enables Crypto.com to offer derivative transactions in the European Union’s 27 member states, as well as in Iceland, Lihenştayn and Norway.
Investments and Undergraduate Strategy
Crypto.com has strengthened its activities in Europe with this acquisition. In January, the company started to provide crypto storage and stock market services through the European Economic Area with a license for Markets in Crypto Assets (Mica). The company did not share financial details of the purchase of Allnew Investments.
Crypto currency exchanges have recently been interested in derivative products to create new sources of income. Crypto.com has joined the MifID license between its competitors Gemini and Kraken, who expanded the field of activity in Europe with derivative products. Kraken also acquired a license by taking over a company with a MIFID license in a similar way.
Competitors’ moves and market mobility
In the crypto currency sector, companies’ interest in derivative products is increasing. At the beginning of this month, Coinbase acquired the option platform Deribit for $ 2.9 billion to strengthen its position in the US -derivative market. Other companies with similar moves are trying to strengthen their positions in the European and US market with this strategy.
In an environment where regulatory requirements are increasing in the background of Crypto.com’s step in Europe, there is a race to acquire official permissions of platforms that want to operate in the European Economic Area. With such licenses, companies provide legal compliance and have the opportunity to access a wide customer base.
Although the Crypto.com management does not give any financial details about this development, in a statement made by the stock market, it is stated that derivative products are widely demanded in Europe and their growth opportunities stand out in this field.
Crypto.com Description: As a company, derivative financial products will allow us to provide more various services to our customers in Europe.
Competition in the derivative market in Europe
The increase in the number of Licensed stock markets in the European market increases the variety of financial products and competition in the region. Platforms, which offer different options for investors with new licenses, reshape competition dynamics in the market. In addition to derivative transactions, it is stated that factors such as customer security and legal compliance are among the priorities of companies.
The tightening of global financial regulations and the increase in investor protection measures encourage crypto exchanges to obtain licenses as part of long -term strategies. Experts think that such steps can support the sustainable growth of companies.
Crypto.com’s MIFID license by acquiring Allnew Investments, means that it can offer derivative financial products to more users on the European continent. The spread of derivative purchase-sale licenses increases the compliance of company strategies with regulations in the region. For users who closely follow the crypto industry, different undergraduate types have significant effects on business model and investor security. In this way, both companies meet the legal requirements and more comprehensive financial products are offered to investors.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
