Coinbase appears to be launching its services under its Cyprus-regulated entity, as its website has recently gone live and shows “perpetual-style and traditional expiry futures contracts” as part of the offering.
Coinbase Puts Its MiFID II Licence to Use
FinanceMagnates.com reported early last year that the American crypto exchange obtained a MiFID II licence by acquiring the Cyprus-regulated unit of BUX, which was offering contracts for differences (CFDs) to retail customers.
The licence allows Coinbase to offer over-the-counter (OTC) derivatives across the European Economic Area.
It has also closed all BUX Cyprus accounts.
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Although Coinbase obtained the MiFID II licence in 2024, it has not yet launched any services under the regulated framework. While the website of its Cyprus unit is now live, the exchange has yet to make any formal announcement.
The offerings under the Cyprus-regulated entity will include perpetual and traditional futures contracts, as well as nano-sized futures contracts. The platform will offer leverage of up to 10x on perpetual contracts.
At launch, the platform is expected to offer a total of 31 derivatives, including a mix of perpetual and traditional contracts, as shown on the website. It will offer derivatives linked to popular cryptocurrencies such as BTC, ETH, and XRP, as well as memecoins, including SHIB and DOGE.
The markets will be open around the clock; however, they will be closed every Friday from 21:00 to 22:00 CET, with an additional three-hour maintenance window each quarter.
FinanceMagnates.com approached Coinbase for details about its European offerings, but had not received a response at the time of publication.
Crypto Exchanges’ Interest in the European Derivatives Market
Meanwhile, Coinbase is not the only crypto exchange targeting European traders with crypto derivatives. Kraken also acquired a Cyprus-based firm and launched crypto derivatives under a MiFID II licence last year. Other crypto firms that have obtained a European crypto licence include Crypto.com and OKX. Gemini is also seeking the same licence from Malta.
Although these exchanges currently appear to be focused on crypto futures and perpetual contracts, the licence also allows them to offer CFDs to their users.
