Coinbase, the largest exchange in the United States, is seeking authorization from the European Union’s Markets in Financial Instruments Directive (MiFID) in order to expand its derivatives business in the EU region. This move will allow the company to offer a wider range of derivative products to qualified clients in multiple EU countries while adhering to strict compliance standards.
Coinbase is actively seeking to acquire a MiFID-authorized entity based in Cyprus, with the aim of completing the transaction by the end of 2024. This will enable Coinbase to offer its derivative products to qualified clients in selected EU countries. MiFID is globally recognized as one of the investment services and activities regulatory frameworks, establishing a single rulebook covering the entire EU and serving as a core pillar of the EU Capital Markets Union strategy.
Throughout this process, Coinbase is committed to maintaining industry-leading compliance and trust in its products and services. Before operating under this authorization or serving any clients, the entity must meet Coinbase’s five-point global compliance standards. This includes strict anti-money laundering (AML) and know-your-customer (KYC) standards, global sanction enforcement, governance best practices, and ongoing rigorous monitoring and reporting.
Coinbase is expanding its business globally and has launched new businesses and derivative products in several key markets over the past year. Through its “broaden and deepen” strategy, the company is building a path for international expansion, with its global compliance standards ensuring that its products and services are highly trusted in the market.
Coinbase’s goal is to increase economic freedom for over one billion people. By achieving this goal, the company will be able to offer a more open and globalized financial system to its global clients. While the road to acquiring and operating an EU MiFID-authorized entity is still long, this move is seen as an important step towards expanding its international derivatives business and realizing this grand vision.
Coinbase
MiFID
European Union