Exclusive: Coinbase Acquires BUX's Cyprus Unit; Is the Crypto Giant Entering CFDs?

Coinbase, the US-listed cryptocurrency exchange giant, has acquired the Cyprus unit of BUX (formerly Stryk) and renamed the entity Coinbase Financial Services Europe, Finance Magnates has learned.

Yorick Naeff, 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.”

Is Coinbase Exploring CFDs?

With this acquisition, Coinbase now holds a Cyprus Investment Firm (CIF) license, which authorizes it to offer contracts for differences (CFDs) products. Additionally, the crypto exchange can passport this Cyprus license to provide financial products across other European Economic Area (EEA) member states.

The Cyprus Securities and Exchange Commission (CySEC) registry confirms that the domain “coinbase.com/international-exchange/europe” has been approved by the regulator, although it is not yet operational. While there is no official confirmation from the crypto exchange, Coinbase appears to be targeting professional and institutional clients with its offerings under the Cyprus license.

Coinbase’s interest in BUX's Cyprus entity seems to center on acquiring the license and operational infrastructure rather than the previous client base. According to earlier reports by Finance Magnates, BUX migrated its Cyprus-based clients to AvaTrade, another CFD broker.

The deal appears to have been finalized last October, as the registry of Belgium’s Financial Services and Markets Authority (FSMA) indicates that the entity’s name was changed from Bux Europe Ltd to Coinbase Financial Services Europe Ltd on October 11, 2024.

Finance Magnates reached out to Coinbase for further details on the acquisition, but the crypto exchange simply pointed out a blog post published in January 2024, mentioning its plans to acquire a MiFID-licensed entity. The blog was later updated stating that Coinbase "closed the acquisition of an EU MiFID II license from Bux."

Coinbase is not the first cryptocurrency exchange to show potential interest in CFDs. In November, Crypto.com confirmed its acquisition of Fintek Securities, an Australian-licensed CFDs broker. Similarly, Bybit holds an active Mauritius license, enabling it to offer forex and CFDs instruments.

BUX's Divestment Complete

Headquartered in the Netherlands, BUX provides investment services to European retail clients. Its primary business was acquired by Dutch bank ABN AMRO last year, with assurances that BUX would continue operating independently.

BUX’s UK unit, which also offered CFDs, was sold to UAE-based APM Capital. The FCA-regulated entity has since been rebranded as APM Markets but has yet to relaunch its services. Finance Magnates previously reported that Joshua Owen was appointed as the CEO of the UK entity.

“[The latest] divestment aligns BUX Holding’s strategic shift to focus exclusively on our shares and ETF offering, which was recently acquired by ABN AMRO Bank,” Naeff added. “We wish Coinbase continued success as they expand their presence in the European market.”