The American cryptocurrency exchange Coinbase is expanding its influence in Europe by acquiring the Cyprus unit of European brokerage Bux. This acquisition ensures a vital MiFID II license.
Acquisition and MiFID II License
The acquisition was completed in August, allowing Coinbase to enhance its international offerings, particularly in derivatives, which represent approximately 75% of the global crypto market. The rebranding of the acquired entity to Coinbase Financial Services Europe was announced in October. The MiFID II license, effective since January 2018, allows Coinbase to operate across EU member states through a streamlined 'passporting' process, eliminating the need for separate licensing in each country.
Future Prospects
Previously, Bux utilized this license to provide contracts for differences (CFD). Coinbase acknowledges the challenges ahead in finalizing the acquisition and operationalizing the licensed entity, but it expresses optimism that the license could be operational by late 2024, with a full launch anticipated in early 2025.
Financial Aspects of the Deal
The financial details of the acquisition remain undisclosed. Bux, acquired by Dutch bank ABN AMRO in July 2024, has been restructuring its operations, including the sale of its UK subsidiary to UAE-based APM Capital as part of a broader divestment strategy.
This strategic deal strengthens Coinbase's position amid growing demand for crypto derivatives in Europe, offering new opportunities for business expansion.
