Coinbase Acquires BUX Cyprus Subsidiary, Gaining a CFDs License to Expand Services Across the European Economic Area (EEA)

In a major development, Coinbase, the prominent US-listed cryptocurrency exchange, has acquired the Cyprus subsidiary of BUX

Coinbase has acquired the Cyprus division of BUX, giving it a license to offer CFDs and expand its services throughout the European Economic Area (EEA).

Coinbase Financial Services Europe is the new name for the Cyprus division of BUX, which was previously known as Stryk. The deal will help Coinbase expand into the European Economic Area (EEA) and offer financial products in the region.

BUX has confirmed the sale of BUX Europe Limited (BEU) to Coinbase, with CEO Yorick Naeff calling it a “logical step” for the company, given Coinbase's reputation in the crypto industry.

Coinbase has purchased several businesses to obtain a Cyprus Investment Firm (CIF) license, which will allow Coinbase to offer contracts for differences (CFDs) products.

Coinbase to Offer Services Across EEA with New Cyprus License

The license will allow Coinbase to passport its services to other EEA countries. While Coinbase Financial Services Europe is not yet operational, the Cyprus Securities and Exchange Commission (CySEC) has approved the use of the domain coinbase.com/international-exchange/europe.

This approval serves as a key juncture for the crypto exchange's European operations.

Although Coinbase has not yet officially announced the details of its new Cyprus license, the company appears to be targeting professional and institutional clients with this offering.

Coinbase was previously granted approval to operate in the US by the New York Department of Financial Services (NYDFS), allowing the crypto exchange to offer services within the state.

This move strengthens Coinbase's presence in one of the most regulated cryptocurrency markets in the country.

It is likely that Coinbase was primarily interested in BUX's Cyprus division for its license and operational infrastructure, rather than its existing client base.

According to the Belgium Financial Services and Markets Authority (FSMA), the takeover was completed in October 2024, at which point the company's name was changed from Bux Europe Ltd to Coinbase Financial Services Europe Ltd.

The acquisition reflects Coinbase's commitment to expanding its European presence and offering products beyond traditional cryptocurrency trading.

By acquiring a licensed entity in Cyprus, Coinbase can build on its existing products and offerings to cater to the growing financial services market in Europe.