Coinbase, the US-listed cryptocurrency exchange giant, has acquired the Cyprus unit of BUX (formerly Stryk) and renamed the entity Coinbase Financial Services Europe, Finance Magnates has learned.
Is Coinbase Exploring CFDs?
With this acquisition, Coinbase now holds a Cyprus Investment Firm (CIF) license, which authorises it to offer contracts for differences (CFDs) products. Additionally, the crypto exchange can passport this Cyprus license to provide financial services across other European Economic Area (EEA) member states.
The Cyprus Securities and Exchange Commission (CySEC) registry confirms that the domain “coinbase.com/international-exchange/europe” has been approved by the regulator, although it is not yet operational. While there is no official confirmation, Coinbase appears to be targeting professional and institutional clients with its offerings under the Cyprus license.
A screenshot of the license details of Coinbase’s CY entity on CySEC’s registry
Coinbase’s interest in BUX’s Cyprus entity seems to centre on acquiring the license and operational infrastructure rather than the previous client base. According to earlier reports by Finance Magnates, BUX migrated its Cyprus-based clients to AvaTrade, another CFD broker.
The deal appears to have been finalised last October, as the registry of Belgium’s Financial Services and Markets Authority (FSMA) indicates that the entity’s name was changed from Bux Europe Ltd to Coinbase Financial Services Europe Ltd on 11 October 2024.
Details about Coinbase Financial Services Europe on FSMA registry
Finance Magnates reached out to BUX and Coinbase for further details on the acquisition but had not received a response by press time.
Coinbase is not the first cryptocurrency exchange to show potential interest in CFDs. In November, Crypto.com confirmed its acquisition of Fintek Securities, an Australian-licensed CFDs broker. Similarly, Bybit holds an active Mauritius license, enabling it to offer forex and CFDs instruments.
BUX’s Divestment Complete
Headquartered in the Netherlands, BUX provides investment services to European retail clients. Its primary business was acquired by Dutch bank ABN AMRO last year, with assurances that BUX would continue operating independently.
BUX’s UK unit, which also offered CFDs, was sold to UAE-based APM Capital. The FCA-regulated entity has since been rebranded as APM Markets but has yet to relaunch its services. Finance Magnates previously reported that Joshua Owen was appointed as the CEO of the UK entity.
