Coinbase seeks MiFID authorization to expand EU derivatives services

The largest U.S. exchange, Coinbase, is seeking authorization to acquire the Markets in Financial Instruments Directive (MiFID) in the European Union market, with the aim of expanding its derivatives business in the EU region. This move will enable the company to offer a wider range of derivative products to eligible clients in multiple EU countries while adhering to strict compliance standards. Source

Expanding into the EU Market: Seeking MiFID Authorization

Coinbase is actively seeking to acquire a MiFID authorized entity based in Cyprus, with the aim to complete the transaction by the end of 2024. This move would enable Coinbase to offer its derivative products to eligible clients in selected EU countries. MiFID is one of the globally recognized frameworks for investment services and activity management, establishing a single rulebook covering the entire EU and serving as a core pillar of the EU Capital Markets Union strategy.

Elevating Compliance and Trust Standards

Throughout this process, Coinbase is committed to maintaining industry-leading compliance and trust in its product and service standards. Before formally operating under this authorization or serving any clients, the entity must meet Coinbase's five global compliance standards, including rigorous Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, global sanctions enforcement, best governance practices, and ongoing rigorous monitoring and reporting.

Enhancing Global Business Expansion

Coinbase is expanding its business globally and has launched new businesses and derivative products in several key markets over the past year. Through implementing its "Broaden and Deepen" strategy, the company is paving the way for international expansion, with its global compliance standards ensuring that its products and services are among the most trusted in the market.

Towards an Open Global Financial System

Coinbase's goal is to increase economic freedom for over a billion people. By achieving this goal, the company will be able to offer a more open and globalized financial system to its global customers. While the path to acquiring and operating an EU MiFID authorized entity is still long, this move is seen as a significant step towards expanding its international derivative business and achieving this grand goal.