UK-based cryptocurrency exchange Archax said on Thursday that it has agreed terms to buy Spanish firm King & Shaxson Capital Markets, Sociedad de Valores (KSCM).
The acquisition, which is still subject to regulatory approvals, will mean Archax can offer crypto trading to clients across the European Union.
It also means the company will be able to offer derivatives. Most likely the firm will be looking to offer perpetual futures.
KSCM also has permissions to operate a multilateral trading facility (MTF). An MTF is very similar to an exchange and would allow Archax to offer a service similar to the one it has in the UK, but for clients in the European Union.
KSCM was set up in 2019 as an offshoot of UK-based King & Shaxson Capital Markets. The company is a fixed-income broker and also operates an MTF in the UK. The sale of the business was likely an effort to focus on those UK operations.
“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 Archax CEO Graham Rodford. “It also broadens our regulated capabilities—particularly in distribution and crypto derivatives—positioning us well for the upcoming implementation of MiCAR in the EU.”