Coinbase, a major US-based cryptocurrency exchange, is making strides to expand beyond the American market by acquiring a company with a MiFID II license to offer crypto-based derivatives in the European Economic Area. The undisclosed Cyprus-based company’s acquisition is subject to regulatory approval and is expected to be finalized by the end of 2024.
Currently, Coinbase provides only spot trading of cryptocurrencies in Europe. The acquisition of the license will enable Coinbase to offer derivatives, which is a significant step as derivatives represent about 75% of the global crypto market demand. This move is aimed at capturing a larger share of the market and supporting the strong interest in their derivatives offerings.
The acquisition process is still in its early stages and requires regulatory consent. Coinbase acknowledges the lengthy path ahead before the deal is concluded. The exchange emphasizes the importance of adding such a license to their international portfolio to further support the growing interest in crypto-based derivatives.
Coinbase has been considering setting up a new exchange in another country as of March 2023 to serve global customers, as it is currently limited by US regulations. Expanding globally remains a core part of Coinbase’s operations, as stated by COO Emilie Choi.
Since then, Coinbase has successfully obtained licenses in various jurisdictions outside the US and has been actively working to expand its reach in the European region.