Coinbase is reportedly nearing a deal to acquire FTX Europe, advancing its derivatives ambitions. This move follows the U.S. bankruptcy of FTX's parent firm last year. Coinbase's interest aligns with its strategic goal to expand in areas with clear cryptocurrency regulations. Meanwhile, other major crypto platforms, including Trek Labs and Crypto.com, also express interest in FTX Europe.

Likewise, Coinbase was said to have held talks to acquire FTX Europe, and the negotiation is already in the last stage. The company quickly looked into the possible acquisition when Sam Bankman-Fried's crypto exchange firm filed for bankruptcy in the United States in November last year.

Industry insiders see Coinbase's move to purchase FTX Europe as proof of the mounting importance of derivatives for its global expansion plans since the spot trading volumes dived into the bear market. In a blog post, Coinbase affirmed it has plans to expand its business in regions that are taking on clear regulations for cryptocurrencies and other businesses related to it, such as Europe.

"Every part of the world is seeing progress on crypto-forward regulation - except for the U.S., which is opting for a 'strategy' of enforcement of existing rules and new regulation through the courts," Coinbase stated. "By sidelining itself while so many advanced and emerging economies move ahead, the U.S. risks forfeiting its influence over the future of the financial system."

As per CoinDesk, Coinbase is interested in buying FTX Europe because of its "highly profitable" derivatives business and growing customer base. The company pointed out that before FTX went bankrupt, it had gained thousands of new users until the last minute.

FTX Europe was put up for sale when its parent company based in the United States declared bankruptcy last year. Meanwhile, aside from Coinbase, other crypto exchange firms, including Trek Labs and Crypto.com, are also interested in buying FTX Europe.

Photo by: PiggyBank/Unsplash