Coinbase Acquires BUX’s Cyprus Division to Enhance EU Operations
By acquiring BUX's Cyprus division, leading crypto exchange Coinbase Global Inc (NASDAQ: COIN) has entered the European market. This acquisition rebrands the entity, previously known as Stryk, to Coinbase Financial Services Europe, emphasizing Coinbase’s aim to expand its offerings and regulatory presence in the European Economic Area (EEA).
Coinbase Makes a New Debut in Europe
Coinbase's acquisition of BUX's Cyprus unit is strategic, providing Coinbase with a Cyprus Investment Firm (CIF) license. This license allows Coinbase to offer contracts for differences (CFDs) and other financial products across the EEA without needing separate approvals in each country, facilitating access to Europe’s evolving financial markets.
BUX CEO Yorick Naeff acknowledged the deal, noting Coinbase’s strong reputation in the crypto industry. The acquisition enhances Coinbase’s position in European finance while enabling BUX to focus on shares and exchange-traded funds (ETFs).
The Cyprus Securities and Exchange Commission (CySEC) approved Coinbase’s new domain, although operations have not commenced. The emphasis will be on professional and institutional clients, responding to tightening retail trading regulations in Europe.
Notably, BUX had already transferred its Cyprus-based clients to AvaTrade, a CFD broker. Thus, this acquisition focuses on infrastructure and licensing rather than client lists.
The deal was officially completed in October 2024, as recorded by Belgium’s Financial Services and Markets Authority (FSMA). The entity’s name changed to Coinbase Financial Services Europe Ltd on October 11, marking the start of its new role under Coinbase.
European Expansion and Industry Trends
Coinbase's entry into CFDs reflects broader trends within the crypto sector. Other exchanges have pursued similar strategies; Crypto.com acquired an Australian CFDs broker, and Bybit obtained a Mauritius license for forex and CFD products.
These developments indicate a growing interest among crypto platforms to diversify their offerings and engage with traditional financial markets. BUX's strategic shift towards shares and ETFs further illustrates this trend, highlighted by ABN AMRO's acquisition of BUX's primary business last year and the upcoming relaunch of BUX's UK unit as APM Markets.
Coinbase's acquisition of BUX's Cyprus entity is a significant step in strengthening its presence in Europe's financial sector, potentially driving innovations and partnerships in the crypto-financial landscape.