- Coinbase’s acquisition of BUX Europe Limited grants it a CIF license to expand financial services across the EEA.
- The CIF license allows Coinbase to offer CFDs and appeal to professional and institutional investors in regulated markets.
- This acquisition aligns with Coinbase’s focus on operational capabilities and expanding its presence in Europe’s financial markets.
Coinbase has officially acquired the Cyprus-based unit of BUX, a European trading platform, as noted by Altcoin Alerts. The obtained commodity, formerly known as BUX Europe Limited, has been renamed Coinbase Financial Services Europe Ltd. This action secures Coinbase a Cyprus Investment Firm license, granting it the ability to offer contracts for differences and other financial products across the European Economic Area.
This acquisition marks Coinbase’s entry into the competitive CFD market. The CIF license enables the company to provide complex financial derivatives that appeal to professional and institutional investors. Additionally, the license allows Coinbase to extend its regulatory compliance across all EEA countries, facilitating further business expansion within Europe.
The Cyprus Securities and Exchange Commission has already supported Coinbase’s new platform, although services remain inactive. Critics indicate that Coinbase’s focus is mainly on attracting professional and institutional investors rather than retail traders.
The agreement, which closed in October 2024, displays Coinbase’s commitment to setting a foothold in Europe’s markets. Before the investment, BUX’s Cyprus-based clients were transferred to AvaTrade, a CFD broker. BUX’s CEO, Yorick Naeff, stated that the sale aligns with the company’s strategic focus on shares and ETFs. He added that the sale of BUX Europe Limited to Coinbase supports the company’s evolving business goals.
Coinbase’s interest appears to center on BUX’s operational capabilities and compliance permissions rather than its user base. With this acquisition, Coinbase is equipped to offer CFDs and other financial instruments, leveraging its MiFID license to expand its services.
Coinbase’s move follows a wider sensation of crypto exchanges entering the regulated CFD market, which allows traders to speculate on asset price movements without owning the assets, and has gained popularity among professional traders. Other exchanges, including Crypto.com, Bybit, and Binance, have also made similar moves into the traditional financial markets.
Coinbase’s new CIF license places the company to cater to the increasing demand for regulated financial products in Europe. With its enhanced infrastructure, Coinbase is poised to provide institutional investors with access to digital assets and financial instruments. This acquisition also reflects BUX’s strategy to focus on shares and ETFs, having previously sold its UK CFD business to APM Capital.
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