Bitstamp’s New License Opens the Door to EU Crypto Derivatives

Cryptocurrency exchange Bitstamp has secured a MiFID Multilateral Trading Facility (MTF) license from the Slovenian Securities Market Agency.

The Markets in Financial Instruments Directive (MiFID) is a framework primarily used for traditional financial markets within the European Union. It covers stocks, securities, and derivatives and applies to trading platforms, investment managers and banks.

According to a press release from Oct. 25 shared with CryptoNews, Bitstamp Financial Services’ new license authorizes it to offer crypto derivatives products, including perpetual swaps, in the EU.

MiFID MTF license? Checked! ✅

We’re among the first crypto exchanges awarded this license, marking the start of a new era.

We can now start taking steps toward offering sophisticated products like crypto derivatives, including perpetual swaps.

More: https://t.co/t7LG2NcZcN pic.twitter.com/p9gK5Ik4QF

— Bitstamp (@Bitstamp) October 25, 2024

A Major Regulatory Milestone

Previously, Bitstamp was criticized for not having the MiFID license, although it had about 50 other authorizations, mostly secured in the United States.

bitstamp doesn't have a license to offer futures in the EU?! https://t.co/Mv3Ujh3eht pic.twitter.com/xXEWNgLYLe

— tmnxeq (@tmnxeq) July 2, 2024

Now, Bitstamp is among the first cryptocurrency exchanges to receive a MiFID MTF license, confirming its compliance with EU stringent capital requirements.

“With this license, Bitstamp will be able to offer derivatives products to investors, helping to usher in a trading ecosystem that supports a range of trading and investment strategies; including helping institutional investors achieve increased capital efficiency,” Jean-Baptiste Graftieaux, Global CEO of Bitstamp, said.

The MiFID license follows Bitstamp’s recent regulatory successes, including the acquisition of a Major Payment Institution license from the Monetary Authority of Singapore (MAS).

Stock trading app Robinhood, which announced its plans to acquire Bitstamp for $200 million in June, will also be able to use the MiFID MTF license and other Bitstamp registrations to offer its own crypto derivatives in the EU.

The deal, subject to regulatory approval, is expected to be finalized in the first half of 2025.

Bitstamp’s Partnership with Stripe

In August, Bitstamp partnered with fintech giant Stripe, aiming to simplify purchasing cryptocurrencies, particularly Bitcoin (BTC) and Ether (ETH), for European consumers.

We’re excited to partner with @Stripe to support their fiat-to-crypto onramp across the EU!

This provides users with a seamless checkout experience optimized for cryptocurrency conversion and allows near instant settlement of cryptocurrency transactions.

Bitstamp will handle… pic.twitter.com/sRUPguVuqb

— Bitstamp (@Bitstamp) August 7, 2024

Stripe’s fiat-to-crypto on-ramp solution allows individuals to buy crypto directly within applications or websites, eliminating the need for pre-existing crypto holdings. This approach addresses the “cold start problem” by enabling on-demand crypto purchases seamlessly integrated into the user experience.

By collaborating with Stripe, Bitstamp leverages its infrastructure to facilitate the conversion of fiat currencies to crypto and the subsequent transfer to users.