Coinbase, the US-listed cryptocurrency exchange, has acquired BUX’s Cyprus-based unit, rebranding it as Coinbase Financial Services Europe. This strategic acquisition secures a Cyprus Investment Firm (CIF) license, enabling Coinbase to offer contracts for differences (CFDs) and passport its services across the European Economic Area (EEA).
The CIF license positions Coinbase to target professional and institutional clients under the unified framework of Europe’s new Markets in Crypto-Assets Regulation (MiCA). This regulation provides clarity but imposes stricter rules, such as requiring e-money token issuers to hold EU authorization.
“We are pleased with the sale of BUX Europe Limited to Coinbase, a globally recognized leader in the crypto industry,” said Yorick Naeff, CEO of BUX, confirming the deal.
CFDs allow clients to speculate on the price movements of assets without owning them, making the offering particularly attractive to Coinbase’s professional and institutional client base.
This move aligns with Coinbase’s efforts to adapt to the MiCA framework, which is expected to reshape the European crypto landscape. However, industry groups have expressed concerns about the tight compliance timeline, warning of potential customer and financial repercussions across EU member states.
Coinbase has already taken measures in response to MiCA, such as ending its USDC rewards program for EEA residents and delisting unauthorized stablecoins. By acquiring BUX’s Cyprus unit, Coinbase strengthens its European presence and compliance capabilities, potentially gaining a competitive edge over rivals like Binance, which has faced regulatory hurdles.
This acquisition signals Coinbase’s commitment to expanding its services and influence in Europe amid the evolving regulatory environment.
