Bakkt is exploring the possibility of expanding its business in Europe amid the strengthening of the local regulatory framework. This was stated by Dan O’Prey, head of product for the institutional platform, in an interview with Cointelegraph.
He praised the 20 April regulation bill for the crypto-asset market (MiCA).
“Any form of clarity is generally good. […] At least, people know where they stand, know how they can operate, and are confident that they are in compliance with the requirements. This allows companies and institutions to immerse themselves in the crypto industry,” explained O’Prey.
In his view, regions that provide clear regulation for digital assets “receive a large influx of talent, capital and jobs.”
Bakkt currently provides services only in the United States. The executive noted that the company “is working with some partners” to identify potential jurisdictions for expansion.
O’Prey also added that “a significant portion of the primary institutional interest” is focused on bitcoin, despite the consequences of the collapse of FTX.
Speaking about the first cryptocurrency, he said that the asset has only benefited from the lack of a proper legal framework in the United States, as regulators had previously designated it a commodity.
Nevertheless, this legal status has been “a significant obstacle” to the adoption of bitcoin in the United States, according to O’Prey.
Earlier in March, Circle — co-emitter of the USD Coin stablecoin — filed applications in France to obtain local licenses as a digital asset service provider and an electronic money institution.
Subsequently, Coinbase CEO Brian Armstrong stated that the crypto exchange could leave the U.S. market. One potential hub for the platform could be the UAE.