Bitstamp and Robinhood Unite for a New Era in European Crypto Trading 🚀
The renowned cryptocurrency platform Bitstamp has achieved a significant milestone by acquiring the MiFID license, paving the way for the introduction of crypto derivatives in Europe alongside Robinhood.
Robinhood’s acquisition of Bitstamp in June for $200 million sets the stage for building a personalized futures and options market tailored to crypto assets.
Bitstamp Secures MiFID License: A New Chapter for European Crypto Derivatives 🌍
As reported by various sources, Bitstamp has successfully obtained the MiFID license, an important regulatory approval essential for expanding into new markets within Europe.
This license, issued by Slovenia’s securities market authority, allows Bitstamp to enhance its offerings significantly.
For those unfamiliar, the MiFID framework is designed to standardize and regulate financial markets, including stocks, securities, and derivatives. It is applicable to trading platforms, investment managers, and investment banks within the EU.
From this point forward, Bitstamp can provide derivative investment products to its clients in Europe while maintaining full compliance with regulations.
Previously, the platform faced scrutiny for lacking the MiFID license, despite holding approximately 50 other regulatory approvals. Now, it is poised to offer more sophisticated services, especially for institutional clients.
This progress allows the exchange to establish a presence in a particularly lucrative sector, as crypto exchanges that deal with futures and options see daily volumes exceeding $100 billion.
Securing the MiFID license showcases Bitstamp’s commitment to adhering to EU regulations while ensuring a trustworthy environment for investors.
Bitstamp stands out as one of the first cryptocurrency platforms to achieve such a milestone, emphasizing safety measures related to anti-money laundering laws and stringent internal controls.
Moreover, the exchange has demonstrated compliance with European capital requirements, further solidifying its market position.
Jean-Baptiste Graftieaux, the global CEO of Bitstamp, remarked on this achievement, highlighting the benefits for investors.
“With this license, Bitstamp will be able to offer derivative products to investors, helping to create a trading ecosystem that supports a wide range of trading and investment strategies, particularly for institutional investors seeking enhanced capital efficiency.”
Robinhood Eyes European Market Expansion Following Bitstamp’s License Acquisition 🌟
The recent granting of the MiFID license to Bitstamp opens exciting opportunities for Robinhood to broaden its market reach in Europe.
Having acquired the crypto broker earlier this year for $200 million, Robinhood now gears up for future developments.
With the completion of the acquisition and the necessary due diligence by 2025, Robinhood will gain complete control and access to Bitstamp’s various licenses, particularly the European ones.
Robinhood has recently expanded its continental services by integrating 20 different cryptocurrencies through its subsidiary. It now shifts its focus toward developing investment tools aimed at institutional participants.
Interestingly, the company has already indicated its intention to launch a platform dedicated to crypto derivatives.
This strategy includes collaboration with Ripple as a significant partner, complementing Bitstamp’s strong position in the market.
Moreover, Robinhood has introduced a new trading platform known as “Legend,” designed to enhance the user experience for professional traders.
Bloomberg noted that Robinhood is exploring the possibility of launching a stablecoin listed under the MiCA framework, which would benefit from clearer regulatory guidelines.
Clearly, the acquisition of Bitstamp and its associated licenses reflects a wider ambition to strengthen its presence in the European market, with a robust marketing strategy anticipated across the EU.
Bitstamp: The Longest Established Crypto Exchange in Existence ⏳
For those unaware, with this acquisition, Robinhood has gained control of Bitstamp, which holds the title of the longest-running cryptocurrency exchange in the world, operational for 13 years.
Bitstamp boasts the longest trading history for the BTC-USD pair, underscoring its legacy within the crypto space. Founded in 2011 by Damijan Merlak and Nejc Kodric, the platform was established to offer an alternative to the then-dominant exchange, Mt. Gox.
Bitstamp’s history also includes a notable security incident in 2015, when 19,000 Bitcoins were stolen. Despite facing this crisis, the exchange demonstrated resilience and transparency, orchestrating a successful recovery.
Today, it is recognized for its strong security protocols and compliance with regulatory requirements.
Bitstamp offers a user-friendly interface for purchasing cryptocurrencies while catering to the needs of more experienced traders through advanced features.
The company is based in Luxembourg and maintains an office in Ljubljana, managing operations worldwide while primarily accepting fiat deposits in euros. However, most trading pairs are denominated in USD.
Within the last 24 hours, Bitstamp recorded trading volumes reaching $266 million, highlighting its influential role among crypto exchanges.
As the landscape of cryptocurrency trading continues to evolve, Bitstamp and Robinhood’s partnerships may herald a new chapter in the European financial market.
Sources:
Financial News
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