US-based cryptocurrency exchange Coinbase has acquired the Cypriot unit of BUX, which has now been rebranded as Coinbase Financial Services Europe.

The acquisition gives Coinbase a license for a Cypriot investment firm under the Cyprus Securities and Exchange Commission, allowing it to offer contracts for differences across the European Economic Area. According to For magnet financing.

CFDs are financial instruments that allow traders to speculate on asset price movements without owning the underlying assets.

This means that users can bet on whether the price of an asset will rise or fall. And with the new licence Coinbase It can expand its services to professional and institutional clients in Europe, representing a strategic move to diversify its offering.

Coinbase It is expected to become The world's most valuable brokerage firm, surpassing Charles Schwab, the $7 trillion asset manager.

Coinbase and CFD products

While Coinbase has not officially confirmed its plans to launch CFD products, its new CySEC license provides the necessary regulatory infrastructure to offer them.

The license can also be “rolled over” across EEA member states, enabling Coinbase to offer financial services within a single regulatory framework, according to Finance Magnetes.

According to BUX CEO Yorick Naif, the company plans to focus on its stocks and ETF offerings after selling various business units, including its operations in the UK and Cyprus. BUX is an investment platform based in the Netherlands.