Coinbase Secures European License for Derivatives Expansion

Strategic Acquisition of Bux's Cyprus Unit

Coinbase has acquired Bux’s Cyprus subsidiary, securing a MiFID II license that enables streamlined expansion of derivatives offerings across EU member states. The rebranded entity, Coinbase Financial Services Europe, reflects the company’s commitment to compliance and growth.

Leveraging MiFID II Passporting

The MiFID II license can be "passported" to other EU countries, allowing Coinbase to offer services without re-licensing in each jurisdiction. This positions Coinbase to capture a larger share of the European derivatives market, which accounts for 75% of global crypto trading.

Operational Launch Anticipated in 2025

While the license has yet to be operationalized, Coinbase aims to launch services in early 2025. The acquisition aligns with its broader European strategy, complementing licenses secured in Italy, Ireland, and Germany.

Broader Regulatory and Market Implications

The acquisition underscores Coinbase’s focus on regulatory compliance amid increasing global scrutiny. With derivatives becoming a key growth area, this move strengthens Coinbase’s competitive edge in Europe’s evolving crypto landscape.