Crypto exchange Coinbase has announced plans to launch regulated crypto-linked derivatives in the European Union (EU). To do this, Coinbase will acquire a holding company with a MiFID II license. MiFID II is a licensing framework that governs investment services and activities in the EU. This move will allow Coinbase to expand access to its derivatives products for eligible European customers.
Coinbase’s expansion into the EU derivatives market is part of its global expansion strategy. The exchange aims to attract institutions and benefit from large-size transactions undertaken by hedge funds and high-frequency trading firms. Coinbase emphasized its commitment to compliance and its Five-point Global Compliance Standard, which includes rigorous monitoring, industry-leading anti-money laundering and Know Your Customer standards, and governance best practices.
Coinbase previously attempted to acquire FTX Europe, a bankrupt crypto exchange offering perpetual futures, but the deal fell through. However, Coinbase recently secured regulatory approval from the Bermuda Monetary Authority to offer perpetual futures to eligible non-US retail customers.
Overall, this acquisition and the launch of crypto-linked derivatives in the EU are significant steps for Coinbase’s global expansion and its goal of bringing a more open and global financial system to the world.
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