- Coinbase secures CySEC license through BUX acquisition enabling financial services across the EEA.
- Coinbase shifts focus to institutional clients with a new European expansion strategy.
- The BUX deal strengthens Coinbase’s regulated offerings in Europe with a unified operational framework.
Coinbase has acquired the Cyprus unit of BUX. It has also rebranded it as Coinbase Financial Services Europe. Coinbase has also acquired a Cyprus Investment Firm license. This license will allow Coinbase to provide its financial services in the European Economic Area.
It eliminates the need to have approvals from each individual country. The acquisition will enable the company to offer contracts for difference to institutional investors in Europe.
With CFDs, investors can trade on the price changes of assets without actually owning the assets. The move fits in line with Coinbase’s drive towards professional and institutional investors. They include hedge funds and trading companies. This aligns with Europe’s stricter regulations of retail trading.
Strategic Focus on Institutional Investors
The aim for the company is to solidify its standing within Europe’s financial markets. The plan is to go after institutional clients rather than retail traders. In the run up to the deal, BUX moved its clients in Cyprus to CFD provider AvaTrade before it closed.
The primary goal of the acquisition is the CySEC license and operational structure of the acquired entity. The license provides a unified framework for offering financial services across the EEA.
The Belgium Financial Services and Markets Authority confirmed the entity’s name change in October 2024. This highlights Coinbase’s commitment to compliance and regulated growth in Europe.
Expanding Regulated Offerings in Europe
Coinbase has steadily expanded in Europe since 2018. The company has launched localized platforms and enhanced compliance measures. It has also introduced staking services, crypto rewards, and educational tools for European clients. The acquisition of BUX’s Cyprus unit is a part of this broader strategy.
This move allows the company to provide CFDs under a single regulatory framework. Competitors like Crypto.com and Bybit have also entered the CFD market, highlighting its growth potential. Coinbase’s strategic focus positions it to leverage Europe’s evolving financial landscape.
The CySEC license strengthens its ability to serve professional clients and institutional investors. This acquisition marks a significant step in Coinbase’s European expansion plans.
