Crypto.com Buys Allnew Investments to Secure MiFID License to Offer Derivatives in Europe

Crypto.com’s Strategic Expansion into European Derivatives Market

Crypto.com has significantly expanded its European operations by acquiring AN Allnew Investments, thereby securing a Markets in Financial Instruments Directive (MiFID) license. This license, issued by the Cyprus Securities and Exchange Commission (CySEC), grants Crypto.com the authorization to offer a wide array of financial derivatives across the entire European Economic Area (EEA). The EEA encompasses the 27 member states of the European Union, plus Iceland, Liechtenstein, and Norway.

This acquisition represents a strategic move for Crypto.com, building upon its existing presence in the region. Earlier this year, the exchange obtained a Markets in Crypto Assets (MiCA) license, enabling it to provide crypto custody and exchange services throughout the EEA. The acquisition of AN Allnew Investments, however, allows Crypto.com to diversify its offerings and tap into the lucrative derivatives market. While the financial details of the acquisition remain undisclosed, the move underscores Crypto.com’s commitment to growth and market leadership within Europe.

The pursuit of MiFID licenses by major crypto exchanges reflects a broader industry trend. Derivatives trading presents a substantial opportunity for increased profitability. Crypto.com joins a growing list of exchanges, including Gemini and Kraken, in securing the necessary regulatory approvals to offer derivatives in Europe. Interestingly, both Gemini and Kraken also achieved this through acquisitions of existing license holders, highlighting the efficiency and strategic advantages of this approach.

The competitive landscape is further illustrated by Coinbase’s recent $2.9 billion acquisition of Deribit, a move focused on strengthening its position in the U.S. derivatives market. This demonstrates the escalating importance of derivatives trading within the broader cryptocurrency ecosystem. Crypto.com’s strategic acquisition in Europe positions the exchange favorably for future growth and competition within the expanding European financial market. The combination of MiFID and MiCA licenses provides Crypto.com with a comprehensive regulatory framework, allowing them to offer a broad range of services to both institutional and retail clients across the EEA.