Coinbase to Acquire MiFID II Licensed Firm For EU Expansion

Coinbase, a leading centralized cryptocurrency exchange, plans to offer crypto-linked derivatives in the European Union, for which it plans to acquire a company in the region that holds the mandatory license and approval. 

In a conversation with CNBC, the exchange mentioned that it has entered an agreement to buy an unnamed company that has a MiFID II (Markets in Financial Instruments Directive) license.

Coinbase is ambitious and global expansion has been a key part of its growth.

The MiFID II license will help Coinbase to offer regulated derivatives, like futures and options. However the approval of the deal fully rests upon the regulators, but market analysts believe that the company will soon secure the approval. 

Like Coinbase, several other companies have filed for a similar license in different countries of the European Union. The rise in the number of applications and registrations comes after the EU established a clear set of rules for the industry.

As per available data, up to 75% of the overall crypto trading volume of Coinbase is contributed by derivatives trading. The ranking of crypto exchanges presented by CoinMarketCap shows that Binance is still leading the market, followed by Coinbase and Kraken, KuCoin, and others. 

In the past 24 hours, the spot trading volume of Coinbase exchange was $2,190,162,405.78. BTC/USD is the most traded pair on the exchange followed by USDT/USD, ETH/USD, SOL/USD, and others. 

Crypto Firms That Secured License in 2023 

In December 2023, Coinbase obtained a crypto license in France, allowing the exchange to provide custody of digital assets.

The French AMF regulators granted Coinbase the designation of Virtual Asset Service Provider (VASP), which allows the exchange to operate a digital currency business in France.

Ripple has received formal clearance from the Central Bank of Ireland for its Ireland branch. After receiving clearance, Ripple was designated as a registered Virtual Asset Service Provider (VASP).

This clearance will assist Ripple in expanding its services in Ireland and better understand the demands of the European cryptocurrency market. The VASP license was awarded to the firm in Ireland by the Central Bank of Ireland.

It has also received “In-principle Approval of a Major Payments Institution Licence” from Singapore’s Monetary Authority (MAS). The Singapore financial regulator’s regulatory clearance will permit the payment protocol for regulated digital asset products and services offerings.

Coinbase Singapore received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore on October 1, 2023. Notably, this advancement follows its original ‘In-Principal Approval’.

Bybit, another prominent global cryptocurrency exchange, received a license in Cyprus earlier this year, allowing the exchange to operate as a trading platform and crypto custody provider in the region. 

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.