U.S. cryptocurrency exchange Coinbase (NASDAQ:) has abandoned its plans to acquire European crypto platform FTX Europe, as reported on Friday. The potential acquisition was part of Coinbase’s strategy to expand its operations into the European market and boost trading volume by offering more crypto derivatives to clients.
Earlier in the week, Fortune reported that Coinbase had considered purchasing FTX Europe twice. The first attempt was in late 2022, following the bankruptcy filing of FTX, the parent company of FTX Europe. The second attempt occurred recently in September 2023. Nevertheless, Coinbase has decided against the acquisition as FTX Europe is currently entangled in bankruptcy proceedings.
FTX Europe had been an attractive target for several companies within the emerging crypto sector. The platform was unique in its ability to offer crypto derivatives to clients within the region, thanks to a regulatory license granted by Cyprus. In addition to Coinbase, Crypto.com and Bahamian entity FTX FDM also expressed interest in acquiring the European exchange.
Despite abandoning its acquisition plans, a window of opportunity remains open until September 24th for potential buyers, according to a statement from the FTX Debtors to Fortune: “The FTX Debtors are committed to maximizing the value of FTX’s assets to drive customer recoveries. As such, the FTX Debtors are continuing to evaluate whether there are viable options for the sale of some or all of the assets of the FTX Europe business.”
Coinbase’s interest in acquiring FTX Europe was fueled by a desire to increase trading volumes amid a downturn in investor interest due to falling cryptocurrency prices. The company recently launched an international arm and acquiring FTX Europe would have significantly expanded its global operations.
However, while Coinbase has backed away from purchasing FTX Europe, it still aims to expand its offerings in the European market. The company plans to launch a crypto derivative offering in the region, a move that follows its recent approval to offer cryptocurrency futures trading to U.S. clients.
Previously, FTX Europe was the sole platform offering perpetual futures contracts in Europe, thanks to its Cypriot license. However, following the crash of FTX in early November 2022, new crypto regulatory rules have been introduced in Europe. Despite this, FTX Europe continued to attract new users until its parent company’s collapse.
While Coinbase’s interest in FTX Europe has waned, the company remains committed to expanding its global footprint and diversifying its offerings to meet evolving market demands.
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