- Coinbase has announced plans to expand crypto offerings in the EU by acquiring a company with a MiFID II license which allows regulated crypto derivatives.
- The acquisition is still pending regulatory approval but Coinbase expects it to close later in 2024, allowing it to offer futures and options trading.
- Coinbase stated it will adhere to EU regulations and compliance standards before launching any licensed services or serving users in the region.
Coinbase has announced plans to expand its crypto product offerings in the European Union by acquiring a company with a MiFID II license. This license will allow Coinbase to offer regulated crypto derivatives like futures and options to eligible customers across the EU.
Details of the Planned Acquisition
Coinbase told CNBC that it has entered into an agreement to acquire an unnamed holding company which owns a MiFID II license. The deal is still subject to regulatory approval, but Coinbase expects it will close later in 2024.
With the license, Coinbase will be able to provide crypto derivatives along with its existing spot trading services in the EU. According to Coinbase, derivatives make up 75% of total crypto trading volumes, so this could be a significant expansion.
Coinbase’s Commitment to Compliance
Coinbase stated that before launching any licensed services or serving users, the acquired entity must achieve Coinbase’s “Five-point Global Compliance Standard.”
The company said it will adhere to EU regulations including anti-money laundering, customer transparency and sanctions requirements. Coinbase highlighted that its compliance team includes over 400 professionals with experience at agencies like the FBI and Department of Justice.
The Path Ahead
Coinbase acknowledged that it still has a long road ahead before finalizing the acquisition and launching licensed services. However, the company sees this as an exciting milestone in expanding access to its derivatives offerings and advancing its mission of bringing a more open financial system to the world.
