Strategic expansion follows Robinhood’s $200M acquisition, strengthening the platform’s position in regulated European crypto derivatives trading.
Platform leverages EU’s crypto-friendly environment and MiCA regulations to attract institutional investors seeking compliant trading solutions.
Global growth strategy demonstrated through recent Singapore MAS approval and partnership with Kryptos for enhanced European financial services.
Bitstamp, one of the world’s prominent cryptocurrency exchanges, plans to start regulated perpetual swamp offerings in Europe. As by Coindesk, citing sources familiar with the news, this move is a big step in expanding into traditional financial markets. Notably, Bitstamp has obtained a license under the Markets in Financial Instruments Directive II (MiFID II).
This makes it one of the few cryptocurrency platforms allowed to offer these financial products in the European Union.
Bitstamp to Provide More Transparency and Security for its Services
The MiFID II license, a set of rules for financial markets in the EU, allows Bitstamp to operate by providing more transparency and security for its trading services. Furthermore, Bitstamp plans to use its MiFID II license to offer a fully regulated perpetual swap offering.
Perpetual swaps are a popular type of trading product in the crypto market. They let traders bet on the price of an asset without a set end date. By offering these swaps in a regulated setting, Bitstamp wants to attract more institutional and retail traders who want a safe and compliant trading platform.
Likewise, Bitstamp is launching regulated derivatives trading to meet new rules from governments in Europe and around the world. These regulations aim to protect investors, maintain fair markets, and stop illegal activities. It is worth noting that Bitstamp is setting itself up to follow these rules by getting a MiFID II license. This will help its users trade in the crypto markets safely and legally.
Meanwhile, Bitstamp’s entry into regulated derivatives trading could set a new standard for other crypto exchanges in Europe.
Why Opt for the European Market
The European market has significantly embraced the crypto industry and the Web3 space. As Coinspeaker previously , traditional financial institutions and global Web3 companies have been eyeing the EU due to the clear regulations provided by the Markets in Crypto-Assets (MiCA) law.
The European countries have attracted significant investment from investors seeking to tap into blockchain technology to tokenize real-world assets (RWA). Furthermore, the European Central Bank (ECB) has been working on rolling out its Central Bank Digital Currency () to complement its existing financial instruments.
More investors from Europe, led by Germany, Switzerland, and France, have significantly adopted digital assets to hedge against global economic uncertainties.
The Bigger Market Picture
Bitstamp has been in Europe and the United Kingdom for years and currently offers different products, including derivatives trading. Earlier in May 2024, Robinhood Markets Inc. a strategic acquisition of Bitstamp in a $200 million deal.
As a result, the expansion of Bitstamp services in Europe is a direct benefit to the Robinhood shareholders. Similarly, Bitstamp a strategic partnership with Kryptos to enhance financial management capabilities for customers in Europe.
Recall that Bitstamp an in-principle approval from the Monetary Authority of Singapore (MAS) to operate as a major payment institution. This marked the entry of the popular European-based cryptocurrency exchange into the thriving Asian market.
