US-based cryptocurrency exchange Coinbase has acquired the Cyprus operations of BUX, now rebranded as Coinbase Financial Services Europe.
According to Finance Magnetes, the acquisition will grant Coinbase a Cyprus Investment Company License under the Cyprus Securities and Exchange Commission, allowing it to offer contracts for difference across the European Economic Area.
CFDs are financial instruments that allow traders to speculate on asset price movements without owning the underlying asset.
This means that users can bet on whether the price of an asset will rise or fall. The new license allows Coinbase to mark a strategic move to diversify its services by expanding them to professional and institutional clients in Europe.
Coinbase is expected to become the world’s most valuable brokerage firm, surpassing $7 trillion asset manager Charles Schwab.
Coinbase and CFD Products
Coinbase has not officially confirmed its plans to launch a CFD product, but its new CySEC license provides the regulatory infrastructure needed to offer it.
According to Finance Magnetes, the license can be “passed” across EEA member states, allowing Coinbase to offer financial services under a single regulatory framework.
According to BUX CEO Yorick Naeff, the company plans to focus on its stock and ETF offerings after selling various business units, including its UK and Cyprus operations. BUX is a Netherlands-based investment platform.