Coinbase has suspended its plans to acquire FTX Europe, a move that was aimed at enabling it to enter into the European derivatives market. This turn of events happened as a response to the regulatory challenges in the US crypto market.

Coinbase targeted FTX Europe due to its profitable derivatives operations under the Cyprus regulatory license. As the exclusive provider of perpetual futures in Europe, FTX Europe has a substantial share of the region's trading volumes. Its derivatives transactions constitute nearly 75% of crypto trading volume globally.

Coinbase Faces Regulatory Challenges

FTX Europe's profitability attracted a number of potential suitors after its parent company declared bankruptcy in 2022. Among those interested in the deal are industry players like Crypto.com and Trek Labs.

Derivatives are financial instruments linked to the value of underlying assets, such as Bitcoin and Ether. They have gained significant prominence within the crypto sphere. As highlighted by the crypto analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term firm Kaiko Research in a report from the second quarter of the year, derivatives trading has gained more traction than spot trading.

For Coinbase, this strategic acquisition would have acted as a countermeasure to its recent decline in revenue from spot trading, as indicated by its report for the second quarter, which recorded $707 million in revenue, with $327 million attributed to spot trading. This was a drop of 13% from the previous quarter.

In August, Coinbase obtained regulatory approval in the United States to offer Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and Ether futures through its Commodity Futures Trading Commission-regulated exchange, FairX.

Expanding Global Footprint

However, a growing wave of regulatory scrutiny targeting cryptocurrency exchanges has compelled Coinbase to halt its acquisition of FTX Europe. Regulatory challenges have emerged as an ongoing concern for the company as it strives to expand its global footprint.

Meanwhile, the deadline for the sale of FTX Europe has been extended to September 24, granting potential suitors a brief window to finalize their bids. FTX itself faces the task of selling off its assets as it grapples with debts of approximately $9 billion, for which it recently received court approval to liquidate its assets.