Coinbase is entering the CFD market with the acquisition of Stryk, a BUK Cyprus Division it has now renamed.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
By acquiring BUX’s Cyprus division, leading crypto exchange Coinbase Global Inc (NASDAQ: COIN) has made a bold leap into the European market. This acquisition move, announced officially today, rebrands the entity, previously known as Stryk, as Coinbase Financial Services Europe. This strategic purchase underscores Coinbase’s ambition to enhance its offerings and regulatory footprint across the European Economic Area (EEA).
Coinbase’s acquisition of BUX’s Cyprus unit is more than just expanding its team; it is a strategic move. As reported by Finance Magnates, the acquisition gives Coinbase a valuable Cyprus Investment Firm (CIF) license.
This will enable the exchange to offer contracts for differences (CFDs) and other financial products across the EEA without needing separate approvals in each country. This opens the door to Europe’s fast-changing financial markets.
BUX CEO Yorick Naeff expressed satisfaction with the deal, highlighting Coinbase’s reputation in the crypto industry. The move strengthens Coinbase’s position in European finance while allowing BUX to focus more on shares and exchange-traded funds (ETFs).
The Cyprus Securities and Exchange Commission (CySEC) has approved Coinbase’s new domain, though operations have not started yet. The focus appears to be on serving professional and institutional clients, a savvy move as Europe tightens its grip on retail trading regulations.
Interestingly, BUX had already moved its Cyprus-based clients to AvaTrade, a CFD broker. So, this acquisition is not about client lists but infrastructure and licensing, a calculated move by Coinbase.
The deal’s completion dates back to October 2024, as noted in the registry of Belgium’s Financial Services and Markets Authority (FSMA). The entity’s name was officially changed to Coinbase Financial Services Europe Ltd on October 11. This marked a formal start to its new role under Coinbase’s umbrella.
Coinbase’s foray into CFDs aligns with broader trends in the crypto sector. In recent months, other crypto exchanges have ventured into similar territories. Crypto.com recently acquired an Australian CFDs broker, and Bybit secured a Mauritius license to offer forex and CFD products.
These moves signal a growing interest among crypto platforms to diversify their offerings and tap into traditional financial markets. This industry shift is further evidenced by BUX’s strategic realignment, as the Netherlands-based company has shifted focus to shares and exchange-traded funds. ABN AMRO’s acquisition of BUX’s primary business last year underscores this transformation, while BUX’s UK unit, now APM Markets, prepares for its relaunch.
Coinbase’s acquisition of BUX’s Cyprus entity represents a key move to strengthen its presence in Europe’s financial sector, potentially catalyzing further innovations and partnerships in the crypto-financial space.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
