Cryptocurrency exchange Bitstamp secured a MiFID Multilateral Trading Facility (MTF) license from the Slovenian Securities Market Agency on October 25.
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 shared with CryptoNews, Bitstamp Financial Services’ new license authorizes it to offer crypto derivatives products, including perpetual swaps, in the EU.
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.
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.
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.
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