- MiFID guarantees a unified trading environment across EU member states.
- Coinbase must go through many regulatory clearance processes before proceeding.
Coinbase is planning to expand its derivatives operations throughout the European Union by acquiring a MiFID-licensed corporation in Cyprus, as stated by the company. The goal of this undertaking is to substantially increase Coinbase’s market presence in 2024, subject to regulatory permission.
In line with Coinbase’s long-term goal of diversifying its product portfolio, the company has launched an acquisition drive to buy a MiFID-licensed organization. An integral part of the EU’s regulatory structure, MiFID guarantees a unified trading environment across member states.
Strategic Expansion
This license will allow the firm to expand its offerings to include cryptocurrency-based derivatives, expanding its reach beyond spot trading inside the EU. This will greatly benefit their European clients.
Compliance with regulations and customer trust are two of Coinbase’s top priorities. Acquiring the license and verifying compliance with Coinbase’s Five-point Global Compliance Standard are therefore essential steps in the acquisition process.
This all-encompassing framework includes strong governance processes, worldwide sanctions enforcement, and rigorous Anti-Money Laundering and Know-Your-Customer regulations. The goal is to establish a standard for operational integrity and high compliance in the dynamic crypto industry.
Coinbase must go through many regulatory clearance processes before this purchase can be finalized. Nonetheless, this major milestone in the expansion plan has not dampened the company’s optimism.
Coinbase is all set to gain new customers and solidify its position in the market by joining the derivatives market, which makes up a significant chunk of the worldwide cryptocurrency market.
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