Coinbase obtains key license to offer derivatives in Europe through acquisition of Bux Cyprus subsidiary

Odaily Planet Daily News: Coinbase has obtained an important license through the acquisition of the Cyprus branch of European brokerage firm Bux to implement its plans for expansion in Europe. The acquisition amount has not been disclosed yet. Bux was previously acquired by Dutch bank ABN AMRO, and the transaction was announced in December 2023 and completed in July 2024. The CEO of Bux stated that in July last year, Bux also sold its UK subsidiary to APM Capital, a UAE investment firm, as part of its plan to divest all supervised subsidiaries of Bux Holding. This acquisition was completed in August, and the company obtained the MiFID II license through this acquisition. Finance Magnates also reported that Coinbase changed the entity's name to Coinbase Financial Services Europe in October last year. The official announcement states: "Adding such licenses to our international investment portfolio will further support our strong interest in derivative products and help us capture approximately 75% of the global cryptocurrency market share for derivatives." The MiFID II regulation initially came into effect in January 2018, and although Coinbase's newly obtained license is located in Cyprus, it can "pass" to other EU member states through a simplified process, allowing Coinbase to provide services throughout Europe without the need to re license in each separate jurisdiction. Bux has previously used this license to offer Contract for Difference (CFD) trading products.