Coinbase is acquiring a Cyprus-based entity with a MiFID license, paving the way for wider access to its derivatives products in Europe.

This strategic move aligns with Coinbase's "Go Broad, Go Deep" plan, aiming to establish clear regulatory frameworks and secure licenses for international expansion. The MiFID license will allow Coinbase to offer derivatives to eligible customers across select EU countries.

Coinbase Gears Up for EU Expansion

The acquisition targets the lucrative derivatives market, estimated to account for roughly 75% of the global crypto space. By expanding its derivatives offerings, Coinbase hopes to capture a significant share of this market and solidify its position as a leading crypto player.

Recognizing the importance of trust and compliance, Coinbase emphasizes its adherence to a rigorous five-point Global Compliance Standard. This standard covers vetting personnel, implementing strict AML/KYC procedures, enforcing global sanctions, upholding governance best practices, and conducting ongoing monitoring and reporting.

Over 400 experienced compliance and legal professionals, with backgrounds in prestigious institutions like the FBI, DOJ, and major banks, guide Coinbase's compliance efforts. This expertise ensures adherence to international regulations and safeguards against potential risks.

As we move forward with finalizing the acquisition and preparing to make the entity operational, this step marks a significant step towards Coinbase's vision of a more global and open financial system. By providing wider access to derivatives within a robust compliance framework, Coinbase aims to empower more than 1 billion people with increased economic freedom.

Coinbase is planning a pivotal acquisition that will allow it to launch crypto derivatives in the EU https://t.co/7jH4kxkpf1

— CNBC (@CNBC) January 5, 2024

Coinbase Secures VASP Registration in France

Coinbase has recently obtained a Visual Asset Service Provider (VASP) registration in France, allowing the American cryptocurrency exchange to offer its full range of retail, institutional, and ecosystem products and services to users in the country. This announcement coincided with Circle, a stablecoin issuer and a company in which Coinbase holds a stake, revealing its VASP registration in France on the same day.

Daniel Seifert, the Vice President and Regional Managing Director, EMEA at Coinbase, emphasized that achieving VASP status in France is a significant milestone that enables the platform to continue global growth responsibly while prioritizing consumer asset security and compliance.

A survey by Toluna revealed that 20 percent of French adults currently hold cryptocurrencies, and an additional 24 percent express the desire to enter the asset class within the next 12 months. This data underscores the high demand for cryptocurrencies in France.