Coinbase acquires BUX’s Cyprus unit in MiCA-friendly European expansion

Coinbase acquires BUX’s Cyprus unit in MiCA-friendly European expansion
DealsMarkets
Coinbase is making expansion moves in Europe as MiCA comes into effect. Credit: Shutterstock / Rarrarorro
  • Coinbase secures Cyprus unit to offer CFDs to European clients.
  • The acquisition boosts Coinbase's MiCA compliance footprint across Europe.

Coinbase, the US-listed cryptocurrency exchange, has acquired the Cyprus-based unit of BUX, rebranding it as Coinbase Financial Services Europe.

This acquisition secures a Cyprus Investment Firm license, enabling Coinbase to offer contracts for differences and passport its services across European Economic Area member states.

CFDs allow investors to speculate on the price movements of assets without owning them, making them an attractive option for professional and institutional clients.

Yorick Naeff, CEO of BUX, confirmed the sale, stating, “We are pleased with the sale of BUX Europe Limited, to Coinbase, a globally recognised leader in the crypto industry.”

The move comes as Coinbase navigates Europe’s new Markets in Crypto-Assets Regulation.

MiCA provides firms with clarity but imposes stricter rules, such as requiring e-money token issuers to hold EU authorisation.

Industry groups have warned that the limited time to comply with MiCA could lead to “serious customer detriment and negative financial consequences across all EU member states.”

These changes have already prompted Coinbase to end its USDC rewards programme for EEA residents and delist unauthorised stablecoins.

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Acquiring BUX’s Cyprus unit positions Coinbase to comply with MiCA while expanding its European footprint.

The CIF license allows Coinbase to target professional and institutional clients under the unified framework, potentially giving it an edge over competitors like Binance, which has faced regulatory setbacks.

Crypto market movers

  • Bitcoin is down 0.2% over the past 24 hours to trade at $97,815.
  • Ethereum is up up 0.9% over the same period to $3,620.

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Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.