Coinbase Expands European Presence with Acquisition of BUX Cyprus Unit

Coinbase, a prominent U.S.-based cryptocurrency exchange, has acquired the Cyprus unit of BUX, rebranding it as Coinbase Financial Services Europe. This strategic move grants Coinbase a Cyprus Investment Firm license under the Cyprus Securities and Exchange Commission.

What the Acquisition Means for Coinbase

The newly acquired license allows Coinbase to offer contracts for differences (CFDs) across the European Economic Area. CFDs are financial instruments that enable traders to speculate on asset price movements without owning the underlying assets. This means users can bet on whether an asset’s price will rise or fall.

Expanding Services to European Clients

With the new license, Coinbase can expand its services to professional and institutional clients in Europe, marking a strategic move to diversify its offerings. This acquisition is expected to contribute to Coinbase’s growth, potentially making it the most valuable brokerage in the world, surpassing Charles Schwab, the $7 trillion asset manager.

Coinbase and CFD Products

Although Coinbase has not officially confirmed plans to launch CFD products, its new CySEC license provides the necessary regulatory infrastructure to offer them. The license can also be “passported” across EEA member countries, enabling Coinbase to offer financial services under a single regulatory framework.

Key benefits of Coinbase’s new license include:

  • Ability to offer CFDs across the European Economic Area
  • Expansion of services to professional and institutional clients in Europe
  • Potential to become the most valuable brokerage in the world

“We plan to focus on our shares and ETF offerings after selling various business units, including our UK and Cyprus operations.” – Yorick Naeff, BUX CEO

BUX, a Netherlands-based investment platform, will focus on its shares and ETF offerings after selling various business units. This strategic move by Coinbase highlights its commitment to expanding its services and offerings in the European market.

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