Crypto.com has taken a significant leap forward by securing a Markets in Financial Instruments Directive (MiFID) license, paving the way for the platform to offer cryptocurrency financial derivatives across the European Economic Area as of May 21, 2025. This milestone enables Crypto.com to broaden its European footprint, expanding on its existing Markets in Crypto-Assets (MiCA) license issued earlier this year.
A Strategic Expansion in Europe
Crypto.com’s recent move is part of a broader strategy to cement its position in the European market. “We have already expanded our brand presence in Europe since receiving our MiCA license, and we now look forward to providing customers across the region even more ways to engage with our platform through these new offerings,” said co-founder and CEO Kris Marszalek. This expansion is not just a play for market share—it’s a calculated step into a burgeoning derivatives market that’s capturing the interest of both institutional and retail investors alike. As explored in our recent coverage of CME Group’s crypto derivatives volume soaring, the demand for such products is on the rise, highlighting the potential for significant growth.
Interestingly, the acquisition of the Cyprus-based trading services firm A.N. Allnew Investments, approved by the Cyprus Securities and Exchange Commission (CySEC), was instrumental in obtaining the MiFID license. This is a popular strategy among crypto firms eyeing European expansion, as seen with Kraken’s similar maneuver just last month. Kraken, partnering with Payward Europe Digital Solutions, also jumped into the derivatives fray under the MiFID II framework. The timing seems impeccable, given Kraken’s recent acquisition of NinjaTrader and a 19% jump in their first-quarter revenue to $471.7 million.
Riding the Derivatives Wave
The allure of crypto derivatives isn’t new but has gained momentum recently. Coinbase, for instance, has been on an acquisition spree, snapping up Deribit—one of the largest crypto derivatives platforms globally. Brian Armstrong, Coinbase’s CEO, has been vocal about their continued pursuit of merger and acquisition opportunities, underscoring the industry’s shift towards derivatives as a key growth area. Gemini and Synthetix are among others making similar moves, with Gemini securing approvals to advance its derivatives trading in Europe and Synthetix planning to reacquire the crypto options platform Derive. This follows a pattern of institutional adoption, which we detailed in Morgan Stanley’s exploration of launching crypto trading through E*Trade.
The bigger picture reveals a market ripe for derivatives, fueled by rising investor interest and the evolving regulatory landscape. According to industry insiders, the European market is particularly attractive due to its regulatory clarity and investor appetite for sophisticated financial products. However, it raises questions about whether this explosive growth in derivatives can be sustained or if it might face regulatory headwinds in the future.
What’s Next for Crypto.com?
Crypto.com’s foray into derivatives marks another chapter in its aggressive expansion strategy. The company has been busy on the acquisition front, having previously acquired entities like Fintek Securities, Charterprime, Orion Principals, and SEC-registered broker-dealer Watchdog Capital. Each acquisition seemingly serves a distinct purpose, aligning with Crypto.com’s broader vision of becoming a global powerhouse in crypto finance.
Yet, as the firm dives deeper into the derivatives market, challenges loom. Regulatory scrutiny is intensifying worldwide, with bodies like the CFTC reportedly eyeing Crypto.com’s operations after its high-profile Super Bowl contracts. As the derivatives space heats up, how Crypto.com navigates these complex waters will be crucial.
The coming months will likely see further developments as Crypto.com and its peers continue to adapt and innovate within Europe’s regulatory framework. The potential for growth is vast, but it’s a landscape fraught with challenges that require careful navigation. The question remains: will Crypto.com’s strategic moves set a benchmark for others, or will it face unforeseen hurdles? Only time will tell.
Source
This article is based on: Crypto.com secures EU license to launch crypto financial derivatives
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
