Coinbase Obtains License To Provide Derivatives In Europe Via Acquisition Of Bux's Cyprus Division

Digital assets exchange Coinbase (NASDAQ:COIN) has acquired a license to provide derivatives in European markets via the recently announced acquisition of Bux‘s Cyprus division.

Digital currency exchange Coinbase confirmed that it has now acquired a license as part of its plans for European business expansion via a strategic acquisition of the Cyprus division of European brokerage firm Bux.

As noted in the update from Coinbase, the latest acquisition was reportedly finalized back in August. This, according to a blog post from the crypto exchange, which said the firm obtained a Markets in Financial Instruments Directive II (MiFID II) license via the transaction.

The latest acquisition has also led to Coinbase changing the business entity’s official name to Coinbase Financial Services Europe (during October of last year).

The update explained:

“Adding such a license to our international portfolio would further support the strong interest we’ve seen in our derivatives offerings and help us capture more of the ~75% of the global crypto market claimed by derivatives,”

The MiFID II regulation became effective back in January 2018.

While Coinbase‘s recently-acquired license is actually based in Cyprus, it may be passported to other European Union member nations in a seamless process, enabling the exchange to provide services across European markets without needing to obtain other licenses.

Bux has previously used the license to provide contracts for differences (CFD) trading products.

Coinbase‘s management said they have a long road ahead before “finalizing the acquisition and operationalizing the EU MiFID licensed entity.”

Coinbase now says the license could become fully effective early in 2025.

The value of the deal has not been shared publicly.

Earlier, Bux has been acquired by Dutch bank ABN AMRO in a deal revealed back in December of 2023 and then finalized during July of last year.

Bux has also reportedly sold off its UK division to UAE’s APM Capital this last July. This was done as part of its goal to divest all regulated subsidiaries of Bux Holding.