Lucía Peña
Coinbase, a major cryptocurrency exchange listed in the U.S., has announced the acquisition of BUX’s Cyprus-based division, now rebranded as Coinbase Financial Services Europe. This strategic move grants Coinbase a Cyprus Investment Firm (CIF) license, enabling the company to expand its services across European Economic Area (EEA) countries.
With the CIF license, Coinbase can offer contracts for differences (CFDs), which allow investors to speculate on asset price movements without owning the underlying assets. This financial instrument is particularly appealing to institutional and professional investors, potentially broadening Coinbase’s market reach in Europe.
Yorick Naeff, CEO of BUX, confirmed the sale, commenting, “We are pleased with the successful transfer of BUX Europe Limited to Coinbase, a globally recognized leader in the cryptocurrency sector.”
The acquisition comes as Coinbase adapts to Europe’s Markets in Crypto-Assets (MiCA) Regulation, a framework aimed at standardizing crypto operations across the EU. While MiCA provides regulatory clarity, it introduces stringent requirements, such as mandatory EU authorization for e-money token issuers.
Industry experts have raised concerns about the limited timeframe for compliance, warning that delays could harm customers and financial stability across the EU.
Coinbase Adapts to Regulatory Changes
In response to MiCA, Coinbase has already made significant adjustments, including ending its USDC rewards program for EEA residents and delisting stablecoins lacking proper authorization. Acquiring BUX’s Cyprus unit allows Coinbase to comply with MiCA requirements while expanding its influence in the European market.
The CIF license offers Coinbase a significant advantage by enabling it to target high-value professional and institutional clients under MiCA’s unified regulatory framework. This move positions Coinbase to outpace competitors like Binance, which has faced multiple regulatory challenges in Europe.
