Bitstamp Expands Offerings with New MTF License

By securing its Multilateral Trading Facility (MTF) license from Slovenia’s Securities Market Agency, Bitstamp has continued to improve its EU regulatory

Major cryptocurrency exchange Bitstamp has secured a Multilateral Trading Facility (MTF) license from the Securities Market Agency in Slovenia, enabling the exchange to expand its product offerings and regulatory footprint within the European Union (EU).

This license will allow Bitstamp to add new products, such as crypto derivatives, to its platform. Specifically, the exchange will be able to offer perpetual swaps, which are a type of derivative that allows traders to speculate on the price of a cryptocurrency without an expiration date.

With the addition of crypto derivatives to its product lineup, Bitstamp will be able to cater to the growing demand from institutional and retail investors for more complex and regulated financial instruments within the cryptocurrency market.

This move by Bitstamp also aligns with a broader trend among regulated EU trading facilities, which are seeking to meet the evolving needs of investors and to remain competitive in the rapidly changing financial landscape.

This development comes as part of Bitstamp's strategy to enhance its product offerings within the EU regulatory framework. Having obtained a license from the Dutch Central Bank earlier this year, Bitstamp is now authorized to provide services in stocks, commodities, bonds, and structured financial products, in addition to cryptocurrency.

This expansion of its authorization enables Bitstamp to offer a wider range of assets, catering to the increasing demand for both digital and traditional assets among investors.

Moreover, Bitstamp's presence in the MTF space, offering perpetual swaps and similar products, complements the offerings of other established exchanges, such as the Amsterdam-based D2X, which operates under a similar regulatory framework.

This integration of crypto offerings within the regulatory ambit of traditional financial practices at the EU level marks a significant advance in the maturation of crypto offerings.

Meanwhile, the U.S.-based fintech company Robinhood has agreed to acquire Bitstamp for $200 million to expand its presence in Europe and Asia. The acquisition is expected to close in early 2025, enabling Bitstamp to further scale its global footprint and crypto capabilities.

This buyout forms part of Robinhood's strategy to bolster its cryptocurrency portfolio and presence in Europe and Asia. However, Robinhood's endeavors in the crypto space have not been without their challenges, particularly in its dealings with the U.S. Securities and Exchange Commission (SEC).

Earlier this year, the SEC served a Wells notice to Robinhood, which, according to regulatory protocol, could have led to提起投诉 regarding securities violations in Robinhood's crypto business.

In this context, the differing regulatory landscapes for the U.S. and EU, as well as the broader compliance advantage afforded by MTF licenses, provide a contrasting backdrop for Bitstamp's operations.

In related news, Bitstamp has also partnered with payment provider Stripe to simplify crypto purchases for European customers. Through this integration, partners will be able to offer a fiat-to-crypto onramp, enabling their users to buy cryptocurrencies like Bitcoin (BTC) and Ether (ETH) directly within the application.

This approach addresses the so-called "cold start problem" by not requiring users to hold any prior crypto, thus providing smoother access to crypto for new users.

As users increasingly demand simplicity in their crypto purchasing experiences, Stripe's infrastructure will be utilized to further add security to Bitstamp's fiat-to-crypto conversion process.

This partnership also aligns with Bitstamp's aim to stake its claim on the European market as a top crypto platform for the smooth trading of digital currencies.