The World’s Longest-Running Crypto Exchange Bitstamp in Talks with European Banks for Crypto Services
Bitstamp, the oldest cryptocurrency exchange in the world, is currently in discussions with three major European banks to help them offer crypto services. These talks aim to enable the banks to provide these services as early as the first quarter of 2024.
In recent months, Bitstamp has seen a significant increase in inquiries from large European banks about its white-label licensing and technology service, which allows banks and fintech firms to facilitate the buying and selling of cryptocurrencies. Robert Zagotta, Bitstamp’s Global Chief Commercial Officer and CEO of the US division, confirmed these discussions without revealing the names of the banks involved.
Diverging Regulatory Approaches: EU vs. US
This development highlights the contrasting regulatory approaches towards the crypto industry between Europe and the United States. While Europe is becoming more welcoming by implementing regulations like Markets in Crypto Assets (MiCA), which was signed into law earlier this year, the US has been cracking down on the industry. The lack of clear regulations in the US has prompted many companies to consider relocating to jurisdictions with more crypto-friendly regulations, particularly in Asia and Europe.
Bitstamp’s Recent Actions and Expansion Plans
In August, Bitstamp announced that it would permanently halt trading of seven altcoins for its US users. This decision may have been influenced by actions taken by the US Securities and Exchange Commission (SEC), which classified these tokens as unregistered securities in complaints against exchanges like Binance and Coinbase.
Additionally, Bitstamp terminated its ETH staking service for US users due to “current regulatory dynamics” in the country. In the same month, reports surfaced about Bitstamp’s plans to raise funds for operations, including launching derivatives trading in Europe and expanding its presence in Asia and the UK.
Hot Take: Bitstamp’s Collaboration with European Banks Signals Crypto Acceptance
The ongoing discussions between Bitstamp and major European banks demonstrate a growing acceptance of cryptocurrencies within the traditional banking sector. By providing white-label licensing and technology services, Bitstamp is enabling banks to enter the crypto market and cater to the increasing demand for digital assets. This collaboration signifies a positive step towards mainstream adoption of cryptocurrencies, especially in Europe where regulatory frameworks like MiCA are promoting a more favorable environment for the industry.
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