Bitstamp, the longest-running cryptocurrency exchange, has earned everyone’s admiration with today’s announcement. According to the announcement, Bitstamp will assist three major banks operating in Europe to offer cryptocurrency services to their customers. This support will begin in the first quarter of 2024.
Bitstamp CEO’s Announcement
The announcement made by Bitstamp’s global commercial director also provided information about the major cryptocurrency asset regulation laws implemented by the European Union, known as MiCA. According to the exchange official, these regulations are actually a legal framework created for traditional financial companies operating in the European Union to provide cryptocurrency services.
The legal regulations implemented by the European Union have a different stance according to US officials. While traditional financial companies in the US hesitate to enter the cryptocurrency market, crypto companies are considering relocating their headquarters to different countries.
Robert Zagotta, the global commercial director of Bitstamp and CEO of its US subsidiary, announced that the new business line designed based on regulatory requirements has received great interest in Europe. According to the new design, the company will obtain a white-label license to provide crypto services to banks and fintech firms and will undergo technological infrastructure changes. Zagotta commented on this matter as follows:
“In the last six to nine months, we have seen a significant increase in requests from major European banks regarding this offer. We are in advanced discussions with three well-known banks in Europe. I think we will be able to announce this around the first quarter.”
The names of the three major banks were kept confidential in the company’s statement. Zagotta also stated that such a change is impossible in the US and pointed out that US crypto companies are moving to countries like Singapore.
Crypto Sector Embraced in Europe
While US officials continue to put pressure on the crypto sector, legal regulations in the European Union are constantly changing and traditional financial institutions are stepping into the crypto sector. Recently, major financial companies such as Deutsche Bank and HSBC have formed partnerships in the crypto field and shared their plans with the public.
Continuing his remarks by highlighting the bankruptcy of FTX and the legal issues faced by Binance, Zagotta said that Bitstamp was rewarded by regulatory authorities. The CEO stated that after FTX’s bankruptcy, the exchange has acquired 36% more companies in the past year, indicating a redistribution of market share.
Lastly, Zagotta emphasized that a crypto exchange like Bitstamp should not halt its operations for any reason, citing that the industry cannot bear another bankruptcy like FTX.
