Coinbase Expanding Derivatives Offering in EU with Acquisition of MiFID-Licensed Entity
Coinbase announced on Friday that it is in the process of acquiring a MiFID-licensed entity based in Cyprus to expand its derivatives offering in the EU. The deal is still pending regulatory approval and is expected to close later in 2024, according to a blog post by Coinbase. The name of the company has not been disclosed.
License to Offer Cryptocurrency-Based Derivatives in Europe
The acquisition of this license will enable Coinbase to offer cryptocurrency-based derivatives in Europe, as the exchange currently only provides spot trading in the EU. Coinbase stated that obtaining this license would support the strong demand for its derivatives offerings and help capture a larger share of the global crypto market.
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Long Road Ahead for Regulatory Approval
However, Coinbase acknowledges that there is still a long road ahead before finalizing the acquisition due to the necessary regulatory approvals. The company remains optimistic about the potential expansion and aims to enhance its international portfolio with this license.
About Author
Anna, a senior policy reporter at The Block, brings her expertise in political journalism and experience covering Russian civil society. With a background in investigating cryptocurrency policies and adoption worldwide, Anna has joined Coinbase after spending five years at CoinDesk. She is a bitcoin owner and also possesses a sentimental gift NFT.
Hot Take: Coinbase Ventures into EU Derivatives Market with Acquisition
Coinbase’s move to acquire a MiFID-licensed entity marks an important step for the company’s expansion into the derivatives market in Europe. By obtaining this license, Coinbase will be able to offer cryptocurrency-based derivatives, which will enhance its product offerings and potentially attract more traders. While the acquisition is still pending regulatory approval, Coinbase remains optimistic about the opportunities it presents. This strategic move demonstrates Coinbase’s commitment to diversifying its services and capturing a larger share of the global crypto market.
