The historic cryptocurrency exchange Bistamp has just obtained the MiFID license and, together with Robinhood, will start offering crypto derivatives in Europe.
Robinhood, which acquired Bitstamp in June for 200 million dollars, will leverage the license to create its own futures and options market on crypto assets.
Robinhood and the exchange Bitstamp obtain the MiFID license: crypto derivatives coming to Europe
According to what was reported by the Financial News, the exchange Bistamp has just obtained the long-awaited MiFID license from Europe.
The document, which enables expansion into new markets, has been granted by the agency for the securities market in Slovenia.
For those who do not know, il MiFID is used to regulate financial markets and the operators who work within the UE.
Let’s talk about a framework that covers stocks, securities, derivatives and applies to trading platforms, investment managers, and investment banks.
From this moment on, Bitstamp Financial Services can offer derivative investment products to its European clients, remaining in full legitimacy.
Until recently, the platform was criticized for the absence of the MiFID license, although it boasted about 50 other authorizations.
Now, however, it can aim for more complex services, targeting institutional-type clients.
> Bitstamp holds over 50 licenses and registrations globally.
fun fact, 40 of those are US state MTL licenses
no MiFID II license (= what they need to offer derivs) pic.twitter.com/rqYKZApNSd
— tmnxeq (@tmnxeq) July 2, 2024
Thanks to this great news, the exchange can get a foothold in a particularly attractive sector. Consider that crypto exchanges for futures and options instruments handle daily volumes of over 100 billion dollars.
The achievement of the MiFID license demonstrates Bitstamp’s commitment and strength in complying with the new regulations of the Union.
It is among the first cryptocurrency exchanges to reach a similar milestone, such as to offer investors a guarantee on anti-money laundering regulations and internal controls.
The compliance of Bitstamp with the strict capital requirements of European regulation is also confirmed.
Sharing the good news with the media, Jean-Baptiste Graftieaux, global CEO of Bitstamp, stated that:
“With this license, Bitstamp will be able to offer derivative products to investors, helping to usher in a trading ecosystem that supports a range of trading and investment strategies; including helping institutional investors achieve greater capital efficiency.”
Robinhood considers expansion in Europe after partner’s license
The obtaining of the MiFID license by the exchange Bitstamp creates a fertile ground for the expansion of Robinhood in the European market.
The US trading platform has in fact acquired the crypto broker in June of this year for 200 million dollars.
As soon as the acquisition is completed with the closing of the due diligence operations (by 2025), Robinhood will take executive control of it.
This means that it will be able to benefit from the licenses collected by Bitstamp, especially those coming from Europe.
Recently, it has expanded its services on the continent by adding new products, 20 different crypto assets, through its subsidiary. Now, however, it wants to focus on investment tools dedicated to the institutional public.
Not by chance, the financial company has already publicly reported being interested in launching its own platform for crypto derivatives.
In this Robinood plan, in addition to Bitstamp, Ripple is also included as a strategic partner.
BOOOOOOOOOOOOOOOOOOM!!!
Robinhood announced a partnership with Bitstamp and Ripple to launch derivatives market exchange!
Robinhood 🤝 #XRP 🤝 Bitstamp pic.twitter.com/iKIufMF3sL
— JackTheRippler ©️ (@RippleXrpie) September 15, 2024
It is not over here, RobinHood has recently launched a trading desktop, called “Legend”, which aims to improve the user experience of professional investors.
According to what was reported a short while ago by Bloomberg, the house of speculations “GameStop” is said to have also studied the idea of launching a stablecoin
Almost certainly, if it does, it will launch a MiCA compliant coin MiCA compliant, being able to rely on support of greater regulatory clarity.
It is clear that the acquisition of Bitstamp and the desire to take advantage of its licenses is part of a broader strategy aimed at revolutionizing its presence in the European market.
Let’s prepare to see a strong marketing campaign from RobinHood throughout the EU.
Bitstamp: the longest-running crypto exchange in the world
Not everyone may know that RobinHood, by acquiring the licenses of Bitstamp, has gotten its hands on the longest-running cryptocurrency exchange in the world with 13 years of activity.
Consider that on Bitstamp we can indeed find the longest trading history for the BTC-USD pair.
The platform was founded in 2011 by Damijan Merlak and Nejc Kodric, with the idea of offering an alternative to the leading exchange of the time Mt. Gox.
The history of Bitstamp also includes a serious hack, where 19,000 Bitcoins were stolen in 2015. This highlights the seriousness and transparency of the service, which, despite the crisis situation, managed to recover over time.
Today it is considered one of the best cryptocurrency exchanges for security and compliance.
It offers the possibility to purchase coins with maximum simplicity, using a clean and intuitive web interface. For more experienced users, it provides premium features.
The company has its registered office in Luxembourg in Belgium, with a satellite office in Ljubljana.
As an exchange, it manages operations worldwide but only accepts FIAT money deposited through the euro payment area of the Union. Nevertheless, the majority of Bitstamp markets are denominated in USD.
In the last 24 hours, the platform has handled trading volumes of 266 million dollars, highlighting its leading role in the crypto exchanges.