While Coinbase aims to compete in the EU derivatives market, it faces stiff competition from more prominent players like Binance and other firms, including Bybit, OKX, and Deribit.
Coinbase aims to expand its derivatives offerings in the European Union by acquiring a MiFID-licensed entity in Cyprus. Pending regulatory approval, this move strengthens Coinbase’s market presence in 2024.
MiFID II refers to the EU’s updated rules governing financial instruments. The EU updated the legislation in 2017 to address criticism that it was too focused on stocks and didn’t consider other asset classes, like fixed income, derivatives and currencies.
According to a blog post, Coinbase can begin offering regulated derivatives in the EU, like futures and options, with a MiFID II license. The company already offers spot trading in Bitcoin and other cryptocurrencies. The deal is subject to regulatory approval, and Coinbase expects it to close in 2024.
