Coinbase, the leading U.S.-listed cryptocurrency exchange, has made a major move to strengthen its presence in Europe by acquiring the Cyprus unit of BUX (formerly known as Stryk). The acquisition, completed in October 2024, rebrands the entity as Coinbase Financial Services Europe. This aligns with Coinbase’s strategy to boost regulatory compliance and expand its services across the European Economic Area (EEA).
Yorick Naeff, the CEO of BUX, also confirmed the deal, saying: “We are pleased with the sale of our MiFID licensed entity, BUX Europe Limited (BEU) to Coinbase, a globally recognised leader in the crypto industry.”
This transaction allows Coinbase to utilize BUX’s regulatory infrastructure while enabling BUX to concentrate on its main business operations.
A Strategic Regulatory Gain
With this acquisition, Coinbase secures a Cyprus Investment Firm (CIF) license, enabling it to offer contracts for differences (CFDs) products. The license also allows Coinbase to extend these services to other EEA member states through a passporting mechanism. This move supports Coinbase’s goal of catering to professional and institutional clients in Europe.
The Cyprus Securities and Exchange Commission (CySEC) registry confirms that Coinbase’s domain, “coinbase.com/international-exchange/europe,” has been approved, though it is not yet operational. This approval underscores Coinbase’s focus on becoming a key player in Europe’s cryptocurrency market.
Transition of BUX’s Clients
Coinbase’s primary interest in acquiring BUX’s Cyprus entity appears to be the license and operational setup rather than its existing clients. BUX had already transferred its CySEC clients to AvaTrade, another provider of CFDs, prior to the acquisition.
Official Changes Confirmed
The acquisition was finalized in October 2024, with Belgium’s Financial Services and Markets Authority (FSMA) recording the name change from BUX Europe Limited to Coinbase Financial Services Europe Ltd on October 11, 2024.
As the European cryptocurrency market continues to evolve, Coinbase’s strategic steps position it well for further growth and innovation.
