Will Coinbase Offer CFDs in Europe? Here’s What We Know

Coinbase, a publicly traded crypto exchange, has expanded its presence in Europe by acquiring the Cyprus-based subsidiary of the mobile brokerage firm BUX. According to a Finance Magnates report, the exchange may soon offer crypto contracts for differences (CFDs) to investors in the European Economic Area (EEA).

Coinbase to Offer CFDs

Although Coinbase and BUX did not disclose details about the acquisition, the deal likely occurred sometime last year. A registry at the Belgian Financial Services and Markets Authority (FSMA) disclosed that the newly acquired firm was renamed from BUX Europe Ltd to Coinbase Financial Services Europe on October 11, 2024.

Coinbase holds a Cyprus Investment Firm (CIF) license following its latest acquisition. This allows the crypto exchange to offer CFDs and other financial products to investors in EEA member states.

For context, contracts for difference (CFD) in the crypto industry are derivative products that allow users to trade crypto price movements without owning the underlying digital asset. This financial instrument gives users indirect exposure to crypto price volatility, encouraging speculation. In addition to cryptocurrencies, CFDs can be implemented on securities, commodities, indexes, and more.

Since Coinbase has made no public stance on whether it would embrace CFDs, it remains uncertain if European investors would access a crypto-focused CFD from Coinbase’s new subsidiary.

Meanwhile, other firms have openly integrated CFDs into their products. In September, crypto exchange Crypto.Com added the derivatives trading feature to its app. Brokerage firm eToro also offers crypto-based CFDs to its German customers.

Coinbase Expands in Europe

Interestingly, Coinbase’s recent acquisition echoes its commitment to expanding its geographical reach within Europe.

Coinbase was among the firms that acquired the European Union’s Markets in Crypto Assets (MiCA) license. In October 2024, the firm noted that it would delist stablecoins like USDT that do not meet the MiCA standards.