Coinbase, the well-known U.S.-based cryptocurrency exchange, has acquired BUX’s Cyprus entity and renamed it Coinbase Financial Services Europe. This move provides Coinbase with a Cyprus Investment Firm (CIF) license from the Cyprus Securities and Exchange Commission (CySEC), enabling the company to offer contracts for differences (CFDs) across the European Economic Area (EEA).
Yorick Naeff, CEO of BUX, confirmed the transaction, stating, “We are pleased with the sale of our MiFID-licensed entity, BUX Europe Limited, to Coinbase, a globally recognized leader in the crypto industry.”
A Strategic Expansion in Europe
By acquiring this license, Coinbase gains the ability to offer financial products, including CFDs, across EEA member states. While Coinbase has yet to launch services under this new license, the CySEC registry lists the domain “coinbase.com/international-exchange/europe” as approved, suggesting upcoming developments. The company’s focus appears to be on professional and institutional clients rather than retail customers.
This acquisition seems to align with Coinbase’s strategy to strengthen its European presence. However, the crypto exchange does not appear to have taken on BUX’s previous client base, as earlier reports indicated that BUX migrated its Cyprus-based clients to AvaTrade, another CFD broker, before the sale.
According to Belgium’s Financial Services and Markets Authority (FSMA), the entity’s name officially changed from Bux Europe Ltd to Coinbase Financial Services Europe Ltd on October 11, 2024, marking the formal completion of the deal.
Is Coinbase Eyeing the CFD Market?
While Coinbase has not explicitly confirmed plans to expand into CFDs, this acquisition raises speculation about the company’s broader ambitions. Other crypto platforms have also shown interest in this market. For example, Crypto.com acquired Australian CFDs broker Fintek Securities last year, and Bybit operates with a license in Mauritius, allowing it to offer forex and CFD instruments.
Coinbase’s move follows its January 2024 blog post announcing plans to acquire a MiFID-licensed entity. The post was later updated to confirm the acquisition of an EU MiFID II license from BUX.
BUX’s Strategic Shift
BUX, based in the Netherlands, has been restructuring its business in recent years. The company sold its primary operations to Dutch bank ABN AMRO, which now supports BUX’s shares and ETF services. Additionally, BUX divested its UK unit to UAE-based APM Capital, which rebranded the entity as APM Markets.
Yorick Naeff explained that these divestments align with BUX’s strategic focus on its shares and ETF offerings. He added, “We wish Coinbase continued success as they expand their presence in the European market.”
This acquisition represents another step in Coinbase’s global expansion and its efforts to diversify offerings in the evolving financial landscape.
