Key Points
- Coinbase is in the process of acquiring a Cyprus-based MiFID-licensed entity, aiming to expand its derivatives offerings across the EU market, with the deal expected to close in 2024 pending regulatory approval.
- The company plans to implement its Five-point Global Compliance Standard before operationalizing the license, demonstrating its commitment to regulatory compliance and trusted service delivery.
Strategic Move into European Derivatives Market
Coinbase, one of the world’s leading cryptocurrency exchanges, has announced plans to acquire a MiFID-licensed entity in Cyprus as part of its strategic expansion into the European Union’s derivatives market. The acquisition, which awaits regulatory approval, marks a significant step in the company’s “Go Broad, Go Deep” strategy and could potentially tap into the derivatives sector that represents approximately 75% of the global crypto market.
Compliance and Regulatory Framework
The Markets in Financial Instruments Directive (MiFID) license, widely recognized as one of the most prestigious regulatory frameworks in the investment services sector, would enable Coinbase to offer derivatives products to eligible customers across select EU countries. The company emphasizes its commitment to maintaining strict compliance standards through its Five-point Global Compliance Standard, which includes vetted team members, robust AML and KYC protocols, and comprehensive sanctions enforcement.
Leadership and Implementation
Backed by a team of over 400 compliance and legal professionals with backgrounds in major regulatory bodies including the FBI, DOJ, and OFAC, Coinbase is positioning itself as a leader in regulatory compliance within the crypto space. The implementation of these standards will be overseen by this experienced team, ensuring alignment with both EU and international regulatory requirements.
The company maintains that while this strategic move represents a significant expansion of their services, the acquisition is not expected to materially impact their financial position. This development aligns with Coinbase’s broader mission to increase economic freedom for over a billion people worldwide through compliant and trusted cryptocurrency services.
