Coinbase, a prominent player in the cryptocurrency market, has made strides in Europe by acquiring the Cyprus division of BUX, as highlighted by Finance Magnates. This acquisition is crucial as it enables Coinbase to enhance its operations within the European Economic Area (EEA).
Highlights of the Acquisition
The Cyprus unit has been rebranded as Coinbase Financial Services Europe and holds a valuable Cyprus Investment Firm (CIF) license. This license permits the exchange to provide various financial products, including contracts for differences (CFDs), across the EEA, mainly targeting professional and institutional clients.
Although the company’s operations are still forthcoming, it’s evident that Coinbase is keen on expanding its presence in the European market.
BUX’s Strategic Refocus
BUX, known for its fintech trading capabilities, had earlier moved its Cyprus clients to AvaTrade. With the sale of this unit, BUX is now concentrating on refining its own operations, focusing primarily on stocks and exchange-traded funds (ETFs). This shift allows BUX to streamline its core offerings while leaving the European cryptocurrency landscape to Coinbase.
Coinbase’s Strategy for Growth in Europe
Coinbase’s advancement into Europe is a strategic initiative driven by improving regulatory clarity in the region, prompting numerous exchanges to establish a stronger presence. The CIF license not only enables Coinbase to offer a broader range of financial products but also enhances its competitive edge in a market that is becoming increasingly receptive to institutional cryptocurrency investment.
