- Coinbase, a leading cryptocurrency exchange, is actively seeking regulatory approval for the acquisition of a MiFID-licensed entity.
- The deal, slated to close later in 2024, aims to bolster Coinbase’s derivatives offerings and extend access to eligible European customers.
- To ensure the highest standards of regulatory compliance, Coinbase has outlined its Five-point Global Compliance Standard.
To broaden its footprint in the European Union (EU), Coinbase, a leading cryptocurrency exchange, is actively seeking regulatory approval for the acquisition of a MiFID-licensed entity based in Cyprus. The deal, slated to close later in 2024, aims to bolster Coinbase’s derivatives offerings and extend access to eligible European customers across select EU countries.
The Markets in Financial Instruments Directive (MiFID) is globally recognized as one of the most stringent licensing regimes governing investment services and activities. By adding this license to its portfolio, Coinbase intends to tap into the comprehensive single rulebook established by MiFID across the EU, aligning with the region’s Capital Markets Union strategy.
Coinbase’s mission to increase economic freedom for over 1 billion people is underpinned by its commitment to building compliant products and services. The acquisition forms a crucial part of Coinbase’s ‘Go Broad, Go Deep’ strategy, creating a runway of clear rules, licenses, and registrations for international expansion.
To ensure the highest standards of regulatory compliance, Coinbase has outlined its Five-point Global Compliance Standard. This includes:
- Vetted and Trusted Team: Aligning the acquired entity’s personnel with Coinbase’s cultural tenets, subjecting all employees to background checks, internal policies, and compliance standards.
- Industry-leading AML and KYC Standards: Implementing Coinbase’s Global AML Policy to comply with EU AML standards and enforcing strict Know-Your-Customer (KYC) and due diligence requirements.
- Global Sanctions Enforcement: Adhering to Coinbase’s Global Sanctions Policy to ensure compliance with US, European, and international sanctions regimes.
- Governance Best Practices: Integrating the entity into Coinbase’s global governance mechanisms, including board oversight, routine reporting, and the establishment of a Compliance Oversight Working Group.
- Ongoing Rigorous Monitoring and Reporting: Subjecting the entity to Coinbase’s global standards of monitoring, testing, and independent audits, including an annual independent AML assessment.
Coinbase’s Five-point Global Compliance Standard is overseen by a team of over 400 compliance and legal professionals with extensive experience in organizations such as the FBI, DOJ, OFAC, FinCEN, and major banks.