LONDON, ENGLAND – NOVEMBER 09: In this photo illustration, a flipped version of the Coinbase logo is reflected in a mobile phone screen on November 09, 2021 in London, England. The cryptocurrency exchange platform is to release its quarterly earnings today. (Photo illustration by Leon Neal/Getty Images)
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Coinbase plans to offer crypto-linked derivatives in the European Union, and it’s planning to acquire a company with a license to do so.
The U.S. cryptocurrency exchange told CNBC exclusively that it entered into an agreement to buy an unnamed holding company which owns a MiFID II license.
MiFID II refers to the EU’s updated rules governing financial instruments. The EU updated the legislation in 2017 to address criticism that it was too focused on stocks and didn’t consider other asset classes, like fixed income, derivatives and currencies.
It’s part of a long-standing ambition by Coinbase to serve professional and institutional customers.
The company, which began 12 years ago, has been seeking to expand its offering to institutions such as hedge funds and high-frequency trading firms over the last several years, looking to benefit from the much higher sizes of transactions done by these kinds of traders.
If and when Coinbase completes the deal, the move would mark the first launch of derivatives trading by the company in the EU.
With a MiFID II license, Coinbase will be able to begin offering regulated derivatives, like futures and options, in the EU. The company already offers spot trading in bitcoin and other cryptocurrencies.
The deal is subject to regulatory approval and Coinbase expects it will close later in 2024.
“This license would help expand access to our derivatives products by allowing Coinbase to offer them to eligible European customers in select countries across the EU,” Coinbase said in a blog post, which was shared exclusively with CNBC on Friday.
“As the industry leader in trusted, compliant products and services, we aim for the highest standards for regulatory compliance, and before operationalizing any license or serving any users, this entity must achieve our Five-point Global Compliance Standard.”
Coinbase said it would look to adhere to rigorous compliance standards that are upheld in the EU, including requirements related to combating money laundering, customer transparency and sanctions.
The company said it is committed to ensuring a five-point global compliance standard, supported by a team of more than 400 professionals with experience at agencies including the FBI and Department of Justice.
“We have a long road ahead before finalizing the acquisition and operationalizing the EU MiFID licensed entity, but this is an exciting step forward in our efforts to expand access to our international derivatives offerings and bring a more global and open financial system to 1 billion people around the world,” Coinbase said in its blog post.
A key battleground
Derivatives could be a crucial battleground for Coinbase. According to the company, derivatives make up 75% of overall crypto trading volumes. Coinbase has a long way to go to compete with its larger rival Binance, which is a massive player in the market for crypto-linked derivatives, as well as firms like Bybit, OKX and Deribit.
According to data from CoinGecko, Binance saw trading volume of more than $56.6 billion in futures contracts in the past 24 hours. That’s seismically larger than the amount of volume done by Coinbase. Its international derivatives exchange did $300 million of futures trading volume in the last 24 hours.
Coinbase does not currently offer crypto derivatives products in the U.K., where they are prohibited. The Financial Conduct Authority banned crypto-linked derivatives in January 2020, saying at the time they are “ill-suited” for retail consumers due to the harm they pose.
Coinbase currently offers trading in bitcoin futures and ether futures in the U.S., and bitcoin futures, ether futures, “nano” ether futures and West Texas Intermediate crude oil futures in markets outside the U.S.
Derivatives are a type of financial instrument that derive their value from the performance of an underlying asset.
Futures are derivatives that allow investors to speculate on what an asset will be worth at a later point in time. They’re generally considered riskier than spot markets in digital assets given the notoriously volatile nature of cryptocurrencies like bitcoin, and the use of leverage, which can significantly amplify gains and losses.
The company made its first move into derivatives in May, with the launch of an international derivatives exchange inBermuda. And the company debuted crypto derivatives in the U.S. in November after receiving regulatory approval from the National Futures Association.
Coinbase had reportedly considered acquiring FTX Europe, the European entity of the now-collapsed crypto venue, but subsequently shelved the idea, according to reporting from Fortune. CNBC has not been able to independently verify Fortune’s reporting.
Expanding beyond U.S.
The move into derivatives continues Coinbase’s expansion drive in markets outside of the U.S.
Coinbase has been aggressively chasing international expansion in the past year as it faces a tougher time at home. The company is the target of a U.S. Securities and Exchange Commission lawsuit alleging it violated securities laws.
In October, the firm picked Ireland as its primary regulatory base in the EU ahead of an incoming package of crypto laws known as Markets in Crypto-Assets (MiCA), and submitted an application for a single MiCA license, which it hopes to obtain by December. 2024 when the rules are slated to be fully applied.
Coinbase also recently obtained a virtual asset service provider license from France, which gives it permission to offer custody and trading in crypto assets in the country.
Google DeepMind Demis Hassabis and Google co-founder Sergey Brin sat for an interview at Google I/O.
Jennifer Elias
Google on Tuesday announced that it’s getting back into the smart glasses game, and co-founder Sergey Brin said that this time will be different.
“I’ve learned a lot,” Brin said Tuesday at a fireside chat during the annual Google I/O developer conference.
His appearance came after Google announced a partnership with Warby Parker, which saw its stock rise more than 15% after the two companies said they plan to launch a series of smart glasses as soon as next year. The glasses will be built on top of Google’s Android XR, an operating system for headset computers, and they’ll include Google’s Gemini AI assistant that users can speak with to control the wearable devices.
Brin’s comments came in an impromptu appearance at a conference chat scheduled between Google DeepMind CEO Demis Hassabis and journalist Alex Kantrowitz about “the future of AI and its impact on our world.”
During the chat, Brin said that with the rise of generative artificial intelligence, Alphabet is able to revive the idea of Google Glass, the wearable devices the company launched in 2013 for $1,500.
“I definitely feel like I made a lot of mistakes with Google Glass, I’ll be honest,” Brin said, adding that he is still a big believer in the glasses form factor.
“And now it looks like normal glasses without that thing in front,” he said, referring to the visible camera that existed on the corner of the original Google Glass prototype.
Google co-founder Sergey Brin demonstrates Google’s new Glass, wearable internet glasses, at the Google I/O conference in San Francisco, Wednesday, June 27, 2012. The audience got live video feeds from their glasses as they descended to land on the roof of the Moscone Center, the location of the conference. (AP Photo/Paul Sakuma)
Paul Sakuma
Brin attributed the failure of Google Glass in part to “a technology gap.” Since 2013 when Google Glass was launched, the company has developed advanced AI technology that powers Gemini, its flagship AI product and a key component for users to control a wearable device.
“Now, in the AI world, the things these glasses can do to help you out without constantly distracting you — that capability is much higher,” he said.
Brin also said that during his first attempt at the Google Glass, he didn’t know anything about supply chains and how to get the glasses to a reasonable price point.
The Google co-founder’s comments come as companies race to compete for wearable glasses as a form factor for AI products. Meta partnered with EssilorLuxottica, the maker of Ray-Ban, to make smart glasses that have a camera for capturing photos and videos. Apple is reportedly working on smart glasses that use augmented reality.
Besides Warby Parker, Google on Tuesday said it will partner with developers and device makers for Android XR, including Samsung, Qualcomm, Sony, Xreal and Magic Leap. Google’s annual developer conference also included a number of updates to its AI products, including a new high-end subscription service called Google AI Ultra, which costs $249.99 per month.
Google announces Android XR and their partnerships with Gentle Monster and Warby Parker during Google’s annual I/O developers conference in Mountain View, California on May 20, 2025.
Camille Cohen | AFP | Getty Images
Glass was first sold to developers and early adopters and gained popularity mostly among tech enthusiasts. Despite backing from Brin and fellow Google co-founder Larry Page, the Glass project never caught on as a mainstream product. The built-in camera led to fights over privacy, and the product became the butt of jokes on late-night television. The company tried to re-launch it as an “enterprise” product, but Google in 2023 announced that it would stop selling its Glass Enterprise smart glasses.
Brin on Tuesday joked about the infamous skydivers that introduced the glasses at Google I/O in 2012, which took place at San Francisco’s Moscone Center. At the time, four Google employees skydived out of a plane, live streaming their jump through their Google Glasses.
“Honestly, it would have been even cooler here at Shoreline Amphitheater,” Brin said, referring to the Mountain View, California, venue that’s currently used by Google for the conference.
“But we should probably polish the product first,” he said, which drew laughs from the audience. “Then we’ll do a really cool demo. That’s probably the smart move.”
The Amazon Prime logo is displayed on Amazon delivery trucks in Richmond, California, June 21, 2023.
Justin Sullivan | Getty Images
Department of Justice officials on Tuesday charged members or associates of an Armenian organized crime ring with stealing more than $83 million worth of cargo from Amazon by posing as legitimate truck drivers and siphoning off goods destined for the company’s warehouses.
Since at least 2021, at least four people linked to the crime ring carried out a scheme across California to steal truckloads of merchandise, ranging from smart TVs and GE icemakers to SharkNinja vacuums and air fryers, the DOJ alleged.
“At present, Amazon is plagued by recurring thefts of its shipments, which is commonly referred to as ‘cargo theft,'” the complaint says.
Amazon has ramped up its efforts to track and shut down fraudulent, deceptive and illegal activities on its sprawling online store. Eliminating stolen goods is particularly challenging. CNBC reported in 2023 that Amazon suspended dozens of third-party merchants it alleged were selling stolen goods, though many of those sellers claimed they were unknowingly caught in the scheme, putting their businesses at risk of survival.
Amazon isn’t the only retailer afflicted by cargo theft. Experts told CNBC cargo theft-related losses are estimated at close to $1 billion or more a year.
In its complaint, the DOJ said the alleged fraudsters operated four transport carriers — AK Transportation, NBA Holdings, Belman Transport and Markos Transportation — that would obtain contracted freight routes from Amazon Relay, an application used by truckers to obtain work, also referred to as loads.
Each trucker is assigned a load for pickup from a manufacturer’s warehouse to be dropped off at an Amazon facility. Instead, the groups would divert from their designated routes, take a portion of the goods off the trucks and resell them or gift them to associates, prosecutors allege.
In some cases, the “self-styled carriers” would complete their deliveries at an Amazon warehouse several days after they were expected to show up, according to the complaint.
DOJ officials seized the alleged fraudsters’ iPhones and found photos and videos of warehouses lined with boxes of crockpots, Keurig coffee machines, keratin shampoo, Weber grills and other goods.
Amazon teams cooperated with DOJ officials in their investigation, including sharing information about the stolen goods, and details of the alleged fraudsters’ accounts on its online marketplace.
Representatives from Amazon didn’t immediately respond to a request for comment.
DOJ officials linked the defendants to a litany of other alleged crimes, including attempted murder, kidnapping, illegal firearm possession and health-care fraud. Several of the 13 defendants are expected to appear in a Los Angeles district court on Tuesday and Wednesday, while one of the defendants appeared in a court in Fort Lauderdale, Florida, on Tuesday and was detained.
Thomas Fuller | SOPA Images | Lightrocket | Getty Images
Apple approved the Epic Games title Fortnite on Tuesday, returning the first-person shooter game to the App Store in the U.S., five years after its removal.
Fortnite was kicked off the App Store in 2020 after Epic updated its game over the web to take payments directly, instead of through Apple’s in-app payment mechanism, which takes fees up to 30%. The move angered Apple and kicked off a years-long legal battle.
Last month, Epic scored a victory in court, when a judge ruled that Apple wasn’t allowed to charge a commission when apps link out for payment, or dictate whether the links look like buttons. Epic said last week that it had submitted Fortnite to the U.S. App Store. To return, Fortnite had to pass App Review, Apple’s process in which new apps or updates are reviewed by Apple employees to ensure they work and adhere to the company’s guidelines.
Apple had dragged out its approval process for the app since May 9, when Epic submitted it to Apple. Last week, Epic filed a legal challenge, and on Monday, a judge said that Apple had to explain why Fortnite hadn’t been approved yet or come to a resolution with Epic over the game’s status.
Apple is appealing the latest court order, and looking to get a pause enabling it to roll back changes the company has already made to the App Store in response. An Apple representative didn’t immediately return a request for comment.
Last month’s ruling led major app makers such as Amazon and Spotify to change their apps to accommodate links to buy content. For example, users can now buy Kindle books inside the Kindle app on an iPhone.
Amazon and Spotify were able to update existing apps that had already been approved with changes enabled by last month’s order. After Epic sued Apple, the iPhone maker revoked Epic’s developer account in addition to booting Fortnite.
Epic was able to get a European developer account and now offers Fortnite in Europe through a third-party app store under the Digital Markets Act, which went into effect last year. IPhone users can also play Fortnite through cloud gaming services. But even in Europe, Apple tried to terminate Epic’s account before backing off, Epic said.
The fees that Apple takes from the App Store are an increasingly important part of Apple’s business. They’re reported in Apple’s Services business, which also includes advertising, AppleCare warranties, payments, and subscription offerings such as Apple TV+. Apple reported nearly $27 billion in services revenue during the March quarter.