Weekly Roundup: XTB Eyes Super App, Coinbase acquires BUX's Cyprus unit

XTB's CEO Eyes Super App as 80% of New Clients Pick Stocks, ETFs

XTB has spent nearly two decades building its position as one of the leading contracts for difference (CFD) brokers. In recent years, however, the company has been doing everything to shed its CFD-only image, seeking clients in increasingly broader financial circles.

Although these three letters still account for 98% of the publicly listed company's revenue, CEO Omar Arnaout confirmed that the current ambition is to transform XTB into an all-in-one financial super app. In an exclusive conversation with Finance Magnates at the fintech's Warsaw headquarters, he also disclosed that the current profile of a retail investor looks entirely different from what it was 10 years ago.

Coinbase Acquired BUX's Cyprus Unit

Coinbase, the US-listed cryptocurrency exchange giant, 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 recognized leader in the crypto industry.”

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.

Does FTX EU Have a New Owner?

Remember FTX? The European branch of the once-popular cryptocurrency exchange that became the center of a major scandal in 2022 has just been acquired. Well, it depends on who you ask.

It all began after Backpack announced it was the new owner of FTX EU. Although Backpack currently ranks only 200th in CoinMarketCap's cryptocurrency exchange rankings by daily trading volume, it hopes to expand its operations through the acquisition of this MiFID II-regulated entity.

Later, In a surprising reversal, FTX clarified that Backpack's “purported” acquisition of its Cyprus division had not been approved by the court, nor had Backpack been authorized to distribute funds to FTX customers.

Further, the press release stated, “The Backpack Press Release was issued without the knowledge or involvement of FTX,” and “a related website established by Backpack contains numerous potentially confusing statements regarding FTX EU, FTX, and the U.S. bankruptcy process.”

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Backpack responded to FTX's claims hours after the bankrupt exchange called the acquisition of its Cyprus entity unauthorized. The latest press release from Backpack emphasized that it has already purchased FTX EU from former insiders, with the transaction “completed and reflected on official publicly available German court records since June 2024.”

FTX sold its Cyprus-based FTX EU to “certain former insiders” in February 2024, and the deal was “approved by the FTX bankruptcy court in March 2024 and subsequently closed in May 2024.” Backpack further noted that the FTX bankruptcy estate had already received payments according to the purchase agreement.

MiCA's Impact Reaches Beyond Regulated Firms

The start of 2025 brings the crypto industry to a critical juncture. Under the second Trump administration, the United States is expected to pivot on its crypto policy. Across the Atlantic, the European Regulation on Markets in Crypto Assets (MiCA), the most comprehensive and ambitious legislation for virtual assets to date, became fully applicable.

A quick recap: MiCA's first implementation date, June 30, 2024, applied to stablecoins (referred to as “Asset Reference Tokens” or “E-Money Tokens” under the MiCA-speak). Its second and final implementation date, December 30, 2024, brought all other regulated tokens and coins, as well as crypto assets service providers (CASPs), under its purview.

🔎 INSIGHT: What is the Markets in Crypto-Assets (MiCA)?

MiCA was introduced to address regulatory inconsistency, rising fraud and potential risks to financial stability, aiming to create a level playing field and safeguard consumers. pic.twitter.com/fB2uztr1cE

— Cointelegraph (@Cointelegraph) December 17, 2024

Kazakhstan Blocks Over 3,500 ‘Illegal’ Crypto Exchanges

Authorities in Kazakhstan blocked more than 3,500 cryptocurrency exchanges operating illegally, according to an announcement by the Kazakh regulator, AFM RK. The crackdown resulted from joint efforts by the National Security Committee and the Ministry of Culture and Information.

In 2023, Kazakh authorities blocked access to Coinbase, citing alleged violations of the country’s digital asset laws. In 2024, the regulator liquidated 36 illegal crypto exchanges with a combined turnover of 60 billion Kazakhstani tenge (over US$113 million). Additionally, it froze and confiscated assets worth 4.8 million USDT, a popular stablecoin, from these platforms.

Bitfinex Moves Derivatives Business to El Salvador

Nearly two years after securing a Digital Asset Service Providers (DASP) license in El Salvador, Bitfinex moved its derivatives business to the crypto-friendly Central American country, the crypto derivatives giant announced this week. Previously, it offered crypto derivatives from its base in the Seychelles.

“Going forward, the Derivatives Services on the Derivative Site will be provided by Bitfinex Derivatives El Salvador S.A. de C.V., an entity established and licensed in El Salvador,” the crypto exchange noted in its official announcement.

📢 Bitfinex Derivatives has been awarded a Digital Asset Service Provider licence in 🇸🇻 El Salvador - a monumental step in our global expansion.

The new licence supports El Salvador as a key digital asset financial centre.
Discover more:https://t.co/vPGO01clhp pic.twitter.com/79hdbBHONX

— Bitfinex (@bitfinex) January 7, 2025

Saxo Bank Fined €1.6 Million

The Netherlands Authority for the Financial Markets (AFM) fined Saxo Bank €1.6 million for regulatory breaches by BinckBank, which has since been merged with the forex and contracts for differences (CFDs) broker. Saxo Bank chose not to contest the fine.

Saxo Bank acquired BinckBank, an online investment platform, in 2019 and completed the merger of the two platforms last year. The AFM announced the fine this week, holding Saxo accountable as BinckBank's legal successor.

LCG UK Expects to Turn a Profit in H2 2024

UK-based London Capital Group (LCG) expects to return to profitability in the second half of 2024 despite reporting an annual loss of over £6 million in 2023, according to its latest Companies House filing. The anticipated turnaround is attributed to management’s decision in mid-2023 to operate solely as an introducing broker for IG Group.

The decision to change the business model was driven by the firm's declining revenue, which fell to approximately £1.7 million in 2023—a 15.5 percent year-on-year drop.

Acuity Debuts AI Trading Signals

Acuity Trading unveiled TradeSignals, an artificial intelligence-powered trading signal platform that combines traditional technical analysis with advanced sentiment analysis for cryptocurrency and foreign exchange markets.

The new automated system, integrated into Acuity's AnalysisIQ product suite, processes market data and news sentiment to generate trading signals across more than 2,000 assets, including major indices like the S&P 500 and NASDAQ 100.

CFI Taps Tools for Brokers for PAMM Systems

Tools for Brokers (TFB) and CFI Financial Group entered into a strategic partnership. Under the partnership, the brokerage platform will integrate the technology provider's PAMM system into its offerings. Announced today (Wednesday), CFI will also incorporate various plugins from the TFB Toolbox to enhance its workflows.

PAMM, which stands for Percentage Allocation Management Module, is a trading system that allows investors to allocate funds to professional traders who manage the funds on their behalf. It is commonly used in forex and CFD trading. Profits or losses from the manager's trading are distributed among investors based on the percentage of their contributions.

Tradu Launches “Tax-Efficient” Spread Betting

Tradu launched spread betting for UK-based investors. This new offering allows clients to engage in leveraged trading in a tax-efficient manner. Spread betting enables speculation on market movements without owning the underlying assets. Tradu’s Spread Tracker aims to offer tight spreads compared to competitors.

“At Tradu, we aim to make sophisticated trading straightforward and rewarding and provide the tightest spreads in the industry," Brendan Callan, CEO of Tradu, commented.

Your Prop Trading Account Hangs on Infusion

The traders of prop firm Axe Trader were anxious to trade. But on December 11th, while checking the firm's Discord channel, they encountered a very unusual picture - Axe's CEO in the hospital after a heart attack. The announcement read: "A temporary pause in our operations, effective immediately."

While a medical emergency is a relatively rare case, there is no shortage of reasons for halting operations, delays - or even outright non-payment - in the prop trading space. This sector has been growing aggressively in recent years. Entry into this unregulated niche is easy. Anyone with a few thousand dollars can set up an operational platform within days, leaving marketing as the primary challenge.

Tech Vendors Lower Entry Barrier for New Prop Firms

The prop trading industry has grown rapidly, with new entities appearing frequently. This expansion raises questions about the ease of entry into the market, the integrity of its operations, and the implications of its technological foundations.

Traditionally, setting up a prop firm was seen as a venture requiring significant capital, trading expertise, and operational efficiency. However, recent trends suggest this perception may not reflect reality. With the support of the right technology vendor, it is now possible to launch a prop firm with a modest investment of around $5,000 and a percentage of the firm's net revenue.

Court Ends £598m Bitcoin Treasure Hunt

Man’s £598m Bitcoin could have been lost forever after a court reportedly blocked recovery. In 2013, James Howells unknowingly discarded a hard drive that would later hold a fortune worth £598 million in Bitcoin. Over a decade later, his bid to recover the digital treasure from a Newport landfill has hit a dead end.

According to the BBC, a High Court judge dismissed his case, stating there were no reasonable grounds to proceed to trial, leaving Howells reeling with frustration and accusations of injustice.

🇬🇧 JUST IN: UK court has rejected James Howells’ lawsuit seeking permission to excavate a landfill in Newport.

Howells had hoped to recover a hard drive containing 7,500 $BTC, which he accidentally discarded in 2013. pic.twitter.com/xKUQtDlNAO

— Cointelegraph (@Cointelegraph) January 9, 2025

From Wildfires to Firewalls: BlackRock et al Leave Climate Coalitions

Lastly, as wildfires blaze in California and a fierce storm brews in North Carolina, Wall Street’s climate pledges go up in smoke as BlackRock and others back out of climate conventions before Trump’s inauguration. Los Angeles is in flames—again. Wildfires have claimed at least ten lives, scorched thousands of homes and businesses, and wreaked havoc in California neighborhoods like upscale Pacific Palisades.

The most destructive wildfires ever for Los Angeles may cause billions of dollars in insured losses, ratings agencies said, though many homes are likely uninsured https://t.co/DjxTgwGtYO pic.twitter.com/lSFIddauTN

— Reuters (@Reuters) January 10, 2025

Famous names like Jamie Lee Curtis and Billy Crystal are among the victims who lost their homes in the inferno. Officials traced the fire’s origins to a wooded arroyo behind a house on Piedra Morada Drive, but lightning—often the usual suspect—was ruled out early. The fires, driven by relentless winds, underscore California’s ongoing battle with climate-fueled catastrophes.