Coinbase Plans to Acquire a MiFID-Licensed Entity in the EU

American cryptocurrency exchange and publicly-listed company Coinbase has unveiled plans to acquire a MiFID-licensed entity, signaling its intention to expand its derivatives offerings within the European Union (EU).

As announced by the exchange, this decision comes as part of Coinbase’s ongoing efforts to diversify its product portfolio and cater to the evolving cryptocurrency market needs

Coinbase to Expand its Services in Europe

The Markets in Financial Instruments Directive (MiFID) is a regulatory framework designed to enhance investor protection and promote market transparency within the EU. By acquiring a MiFID-licensed entity, Coinbase aims to position itself as a key player in the European derivatives market, offering a broader range of financial products to its user base.

However, the deal is still subject to regulatory approval and is likely to close later in the year. Meanwhile, the name of the Cyprus-based company remains unknown.

By leveraging an existing licensed entity, Coinbase can streamline its entry into the derivatives market, ensuring compliance with regional regulations, and gaining a competitive edge in the European financial ecosystem.

Furthermore, the expansion reflects the maturation of the cryptocurrency market, with established platforms like Coinbase recognizing the need to offer a comprehensive suite of financial products beyond traditional spot trading.

Coinbase is Not The Only One Eyeing the European Market

Although the cryptocurrency market has been volatile, the widespread adoption of cryptocurrencies in Europe has not slowed.

As per reports, cryptocurrency exchange Gemini has expanded into new European markets. The exchange is now operating in Denmark, Sweden, Portugal, Latvia, the Czech Republic, and Liechtenstein.

Additionally, CEX.IO was named best exchange at the 2022 Hedgeweek European Digital Assets Awards. The award recognizes outstanding work by digital assets fund managers and service suppliers.

Coinbase Pushes for Global Prominence

Recall that the US-based exchange previously said its push toward an offshore derivatives exchange is part of its strategy to be globally known internationally across six continents. Also, coinbase has been granted a regulatory license in Bermuda to launch an offshore derivative exchange.

Meanwhile, the company said it has upgraded its retail platform for its Singaporean customers, launched full crypto services in Brazil, and is seeking a regulatory license in Abu Dhabi.