Coinbase has taken a significant step towards expanding its presence in Europe by acquiring the Cyprus unit of European brokerage firm Bux, which allows the crypto exchange to secure a crucial Markets in Financial Instruments Directive II (MiFID II) license.
This acquisition, completed in August, enables Coinbase to enhance its international offerings, particularly in derivatives, which represent approximately 75% of the global crypto market. The company announced the rebranding of the acquired entity to Coinbase Financial Services Europe 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.
Previously, Bux utilized this license to provide contracts for differences (CFD) trading products. Although Coinbase acknowledged the challenges ahead in finalizing the acquisition and operationalizing the licensed entity, it expressed optimism that the license could be operational by late 2024, with a full launch anticipated in early 2025.
The financial details of the acquisition remain undisclosed. Bux, which was 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 move positions Coinbase to capitalize on the growing demand for crypto derivatives in the European market.
