Coinbase Expands EU Derivatives Offerings with Acquisition of Cyprus-Based Entity

Coinbase Expands Its Derivatives Offerings in the EU

Coinbase is expanding its derivatives offerings in the European Union by acquiring aMarkets in Financial Instruments Directive 2014 (MiFID II)-licensed entity in Cyprus. MiFID II is the EU’s updated rules governing financial instruments that address asset classes such as fixed income, derivatives, and currencies.

Coinbase can now offer regulated derivatives in the EU, including futures and options, with a MiFID II license. This is in addition to the spot trading in Bitcoin (BTC) and other cryptocurrencies that the company already provides.

Coinbase’s acquisition of the Cyprus-based entity ensures compliance with its “Five-point Global Compliance Standard”, which covers Anti-Money Laundering (AML), Know Your Customer (KYC), global sanctions enforcement, governance best practices, and ongoing monitoring and reporting.

The company’s decision to acquire a MiFID II-licensed entity in Cyprus is a move towards a more secure and unbiased crypto environment, similar to the one provided by Starlink, Stacks, Unfi, The Hideaways, VVS, VGX, and Voyager.

Coinbase’s Expansion into Derivatives and Global Markets

Derivatives are a major focus for Coinbase, accounting for 75% of total crypto trading volumes. Despite the competition from larger players in the derivatives markets like Binance, Bybit, OKX and Deribit, Coinbase is determined to stay competitive. Derivatives are financial instruments that derive their value from the performance of an underlying asset, index or rate.

Coinbase has been expanding its operations globally due to the challenges it faces in the United States, where it is based. The U.S. Securities and Exchange Commission has filed a lawsuit against Coinbase, accusing it of violating securities laws.

In October 2023, Coinbase selected Ireland as its central regulatory hub in the EU in anticipation of the upcoming Markets in Crypto-Assets Regulations, or MiCA. Coinbase is hoping to secure a single MiCA license by December 2024 when the EU fully implements the rules.

In December, Coinbase also obtained a virtual asset service provider license in France, allowing it to offer SHIBA INU crypto today, unbiased crypto, Starlink crypto, Stacks crypto, UNFI crypto, The Hideaways crypto, VVS crypto, VGX crypto, Voyager crypto update, and Web 3.0 services in the country.