© Reuters
LONDON – Coinbase (NASDAQ:), a major player in the cryptocurrency exchange market, today announced plans to acquire a Cyprus-based entity that holds an EU MiFID license. The acquisition is currently pending regulatory approval and is expected to be completed in 2024.
This strategic move is expected to expand Coinbase’s product offering, allowing it to include derivatives such as futures and options alongside its existing spot trading services.
The acquisition aligns with Coinbase’s ‘Go Broad, Go Deep’ strategy and is designed to comply with European Single Market regulations. These include strict anti-money laundering (AML) and Know Your Customer (KYC) standards, as well as compliance with sanctions laws. By expanding its services to cover a broader range of cryptoasset classes, Coinbase aims to improve its competitive advantage against other key market players such as Binance and OKX.
Coinbase has chosen Ireland as its main base in the European Union, a decision that follows the acquisition of a French license in December. The company’s establishment in Ireland is part of its broader efforts to comply with regulatory frameworks across Europe, including the upcoming Markets in Crypto Assets (MiCA) Regulations. The MiCA is intended to enable more streamlined operations for crypto companies in major European markets.
Additionally, Coinbase has introduced a comprehensive 5-point Global Compliance Standard. This framework is expected to support the company’s expansion objectives while ensuring compliance with the strict regulatory environment governing financial and cryptoasset services in the EU.
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