Coinbase’s European Growth: Acquiring MiFID II License for Crypto Derivatives

The expansion beyond the US market has been a persistent goal for Coinbase, a major player in the cryptocurrency exchange arena. In its latest move, the company has set its sights on the European region, aiming to offer crypto-based derivatives following the acquisition of a MiFID II-licensed firm based in Southern Cyprus.

The pending acquisition, contingent on regulatory approval and anticipated to be finalized by the end of 2024, signals Coinbase’s commitment to broadening its services in Europe. With the addition of the MiFID license, Coinbase seeks to enhance its offerings, tapping into the substantial demand for crypto-based derivatives, which currently accounts for around 75% of the global cryptocurrency market.

While the specific details of the Southern Cyprus-based company remain undisclosed, the acquisition is poised to pave the way for Coinbase to introduce crypto-based derivatives trading in the European market. Notably, Coinbase presently provides spot crypto trading services in the region, and this strategic move aligns with the company’s efforts to diversify its offerings and extend its global footprint.

The potential expansion into the derivatives market follows earlier indications in March 2023 that Coinbase was contemplating establishing a new cryptocurrency exchange to cater to its global clientele. Operating within the regulatory framework of the US, Coinbase has faced limitations in the services it can provide to users outside the country. The forthcoming acquisition aligns with Coinbase’s broader strategy of global expansion, underscoring its commitment to becoming a leading player in the European cryptocurrency landscape.

As the cryptocurrency industry continues to evolve, Coinbase’s proactive steps to secure regulatory approvals and expand its services highlight its adaptability and commitment to meeting the diverse needs of users worldwide. The move into the derivatives market, enabled by the acquisition of a MiFID II-licensed firm, reflects Coinbase’s strategic positioning to capture a larger share of the dynamic and growing global cryptocurrency market.