Coinbase, the US-based cryptocurrency exchange, has acquired the Cyprus unit of BUX, now renamed Coinbase Financial Services Europe.
The acquisition grants Coinbase a Cypriot investment business license from the Cyprus Securities and Exchange Commission, allowing it to offer contracts for differences in the European Economic Area, according to Finance Magnetes.
CFDs are financial instruments that allow traders to speculate on asset price movements without owning the underlying assets.
This means that users can bet on whether the price of an asset will rise or fall. With the new license, Coinbase can expand its services to professional and institutional clients in Europe, marking a strategic move to diversify its offerings.
Coinbase is expected to become the world’s most valuable brokerage, surpassing Charles Schwab, the $7 trillion asset manager.
Coinbase and CFD Products
Although Coinbase has not officially confirmed plans to launch CFD products, its new CySEC license provides the regulatory infrastructure necessary to offer them.
The license can also be “passported” into EEA member countries, allowing Coinbase to offer financial services within a single regulatory framework, according to Finance Magnetes.
According to Yorick Naeff, CEO of BUX, the company plans to focus on its stock and ETF offerings after selling off various business units, including its UK and Cyprus operations. BUX is an investment platform based in the Netherlands.
