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Coinbase set to acquire Cyprus-based entity with EU licence

EditorAhmed Abdulazez Abdulkadir
Published 09/01/2024, 01:40 am
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LONDON - Coinbase (NASDAQ:COIN), a major player in the cryptocurrency exchange market, announced today plans to acquire a Cyprus-based entity that holds an EU MiFID license. The acquisition is currently pending regulatory approval and is projected to be completed within the year 2024.

This strategic move is expected to broaden Coinbase's product offerings, enabling it to include derivatives such as futures and options alongside its existing Bitcoin 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 stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, as well as adherence to sanctions laws. By expanding its services to cover a wider range of crypto asset classes, Coinbase aims to enhance its competitive edge against other key market players like Binance and OKX.

Coinbase has chosen Ireland as its main European Union base, 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 Regulations (MiCA). The MiCA is set to enable more streamlined operations for crypto businesses across major European markets.

Additionally, Coinbase has introduced a comprehensive 5-point Global Compliance Standard. This framework is expected to support the company's expansion goals while ensuring adherence to the strict regulatory environment governing financial and crypto asset services in the EU.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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