Coinbase Secures European Expansion with BUX Europe Acquisition

2025-01-04 companies

Amsterdam, Friday, 3 January 2025.
Coinbase’s acquisition of BUX Europe, completed in October 2024, grants a CIF license, enabling it to offer financial products in the European Economic Area, targeting institutional clients.

Strategic Acquisition Details

Coinbase Global, Inc. (NASDAQ: COIN) finalized the acquisition of BUX Europe Limited on October 31, 2024 [1]. The entity has been rebranded as Coinbase Financial Services Europe [1][3], marking a significant expansion of Coinbase’s European presence. This strategic move primarily focused on securing operational infrastructure and regulatory approvals rather than acquiring BUX’s existing client base [1][7].

Regulatory Implications and Market Access

The acquisition provides Coinbase with a coveted Cyprus Investment Firm (CIF) license [2][3], enabling the company to offer Contracts for Differences (CFDs) products across the European Economic Area (EEA). BUX’s CEO, Yorick Naeff, commented on the deal: ‘We are pleased with the sale of our MiFID licensed entity, BUX Europe Limited (BEU) to Coinbase, a globally recognised leader in the crypto industry’ [2]. Prior to the acquisition, BUX had already transferred its Cyprus-based clients to AvaTrade [3][4].

Operational Status and Future Plans

While the Cyprus Securities and Exchange Commission (CySEC) has approved Coinbase’s new European domain ‘coinbase.com/international-exchange/europe,’ the platform is not yet operational [3][7]. The company appears to be positioning itself to focus primarily on professional and institutional clients in the European market [2][4]. This expansion aligns with Coinbase’s broader strategy of enhancing its regulatory compliance and product offerings across Europe [1][7].

Sources

acquisition cryptocurrency