Coinbase, a leading cryptocurrency exchange, has expanded its horizon in Europe by acquiring the Cyprus unit of BUX. The acquisition was reported by Finance Magnates. This is a significant move as this will help the exchange deal more within the European Economic Area (EEA).
Key Details of the Acquisition
The Cyprus-based entity has been rebranded to Coinbase Financial Services Europe and comes with coveted Cyprus Investment Firm (CIF) license. This license will allow the exchange to offer financial products such as contracts for differences (CFDs) throughout the EEA and will cater its services to professional and institutional clients.
The operations of the company are yet to commence but with this move, one thing is for sure, Coinbase is aggressively trying to expand into the European market.
BUX’s Shift in Focus
BUX, a fintech firm which is known for its trading services, had previously transferred its Cyprus-based clients to AvaTrade. After the Cyprus unit was sold, BUX then shifted its focus on streamlining its operations. Currently, the company’s primary focus is on shares and exchange-traded funds (ETFs). These diversion helps the company to concentrate on its core activities and offerings, while, the exchange will take over the European crypto market.
Coinbase European Growth Strategy
Expanding Coinbase’s reach in the Europe was a strategic move because as the regulatory clarity in Europe has been improving, more and more exchanges want to expand their footsteps within the region. The CIF license not only positions the exchange to offer diversified financial offerings but also positions the exchange to compete more in a market that is open to institutional crypto adoption.
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