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

Coinbase has acquired a key license to implement its plans to expand in Europe by acquiring the Cyprus branch of European brokerage Bux. The acquisition amount has not been disclosed. Bux was previously acquired by Dutch bank ABN AMRO in a deal announced in December 2023 and completed in July 2024. Bux also sold its UK subsidiary to UAE investment institution APM Capital last July as part of its plan to divest all regulated subsidiaries of Bux Holding, according to Bux CEO. The acquisition was completed in August, and the company obtained a Markets in Financial Instruments Directive II (MiFID II) license through the acquisition. Finance Magnates also reported that Coinbase changed the name of the entity to Coinbase Financial Services Europe in October last year. The official announcement states: “Adding such a license to our international portfolio will further support our strong interest in derivatives products and help us capture approximately 75% of the global crypto market for derivatives.” MiFID II regulations initially came into effect in January 2018, and although Coinbase’s newly acquired license is located in Cyprus, it can be “passed on” to other EU member states through a streamlined process, allowing Coinbase to provide services throughout Europe without having to re-obtain a license in each individual jurisdiction. Bux used this license to offer CFD trading products.