Bitstamp Secures MiFID License Opening Opportunities for Crypto Derivatives in the EU

Bitstamp Secures MiFID License Opening Opportunities for Crypto Derivatives in the EU

Cryptocurrency exchange Bitstamp has achieved a significant regulatory milestone by obtaining a MiFID Multilateral Trading Facility (MTF) license from the Slovenian Securities Market Agency on October 25. This new license allows Bitstamp Financial Services to offer crypto derivatives products, including perpetual swaps, within the European Union. The Markets in Financial Instruments Directive (MiFID) is a comprehensive regulatory framework that governs traditional financial markets in the EU, covering assets like stocks, securities, and derivatives, and is applicable to various trading platforms, investment managers, and banks.

Bitstamp's acquisition of this license comes after prior criticism for lacking MiFID authorization, despite holding approximately 50 other regulatory approvals, primarily from the United States. With the MiFID MTF license now secured, Bitstamp joins a select group of cryptocurrency exchanges that meet EU capital requirements, positioning itself to offer a variety of derivatives products to investors. Jean-Baptiste Graftieaux, Global CEO of Bitstamp, emphasized that this development will enhance the trading ecosystem, enabling a range of investment strategies and providing institutional investors with improved capital efficiency.

The MiFID license acquisition is part of Bitstamp's broader regulatory achievements, which recently included securing a Major Payment Institution license from the Monetary Authority of Singapore (MAS). Additionally, Robinhood, the stock trading app that announced plans to acquire Bitstamp for $200 million in June, will benefit from this MiFID MTF license and other regulatory registrations. This deal is pending regulatory approval and is expected to be finalized in the first half of 2025.

In a related development, Bitstamp has partnered with fintech giant Stripe to streamline cryptocurrency purchases for European consumers. This collaboration enables users to buy cryptocurrencies such as Bitcoin and Ether directly within applications or websites, thus removing the need for existing crypto holdings. By leveraging Stripe’s fiat-to-crypto on-ramp solution, Bitstamp can facilitate seamless conversions from fiat currencies to cryptocurrency, addressing the challenges of user onboarding and enhancing the overall user experience.