The American crypto exchange Coinbase has obtained a Cyprus Investment Firm (CIF) license after recently purchasing the Cyprus unit of BUX, a European fintech company. The acquired entity has now been renamed Coinbase Financial Services Europe, marking a significant expansion of the exchange’s operations in the region.
Coinbase Acquires BUX’s Cyprus Unit
Yorick Naeff, CEO of BUX, confirmed the acquisition and expressed satisfaction with the sale of the company’s MiFID-licensed entity, BUX Europe Limited (BEU), to Coinbase. The deal demonstrates the exchange’s growing interest in the European market and desire to diversify its product offerings.
Coinbase’s CIF license enables the exchange to offer contracts for differences (CFDs) products. The American firm can also use the permit to provide financial products in other European Economic Area (EEA) member states. The Cyprus Securities and Exchange Commission (CySEC) registry has confirmed the approval of Coinbase’s domain, although it is not yet operational.
The acquisition seems to be aimed at obtaining the license and operational infrastructure rather than the previous client base. According to Belgium’s Financial Services and Markets Authority (FSMA) registry, this latest acquisition was finalized in October 2024.
The acquisition is a significant development in Coinbase’s expansion strategy, and the company is expected to provide more details on its plans for the CFD license in the coming months. Even though Naeff confirmed the purchase, Coinbase has yet to make any official statement.
Other Exchanges Make Similar Move
Coinbase’s interest in CFDs is not the first move in the crypto industry. Another exchange, Crypto.com, recently acquired Fintek Securities, an Australian-licensed CFDs broker. Bybit also holds an active Mauritius license, enabling it to offer forex and CFDs instruments.
Binance recently secured regulatory approval in Brazil by acquiring broker Sim;paul. The purchase marked the exchange’s 21st global license and the first crypto exchange to hold a broker-dealer license in the country.
A few months ago, another American crypto exchange, Kraken, acquired Coin Meester, a crypto broker licensed in the Netherlands, to expand its reach in the European Union. The move marked a significant milestone for the exchange.
As the crypto industry grows, more exchanges will likely explore other financial products to diversify their offerings.
