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The world’s longest-running crypto exchange Bitstamp is in talks with three large European banks about offering crypto services.
The 12-year-old exchange is in talks to help the banks begin offering these services possibly in the first quarter of 2024.
Cryptonews has reached out to Bitstamp for comment.
In a comment to CoinDesk, Robert Zagotta, the company’s global chief commercial officer and CEO of the US division, stated that, over the past 6-9 months, Bitstamp has seen “quite an increase in inbound inquiries” from big European banks about Bitstamp-as-a-service offering, its white-label licensing and technology service enabling banks and fintech firms to offer buying and selling of cryptocurrencies.
“We are in advanced conversations with three such banks, household name banks in Europe. I think first quarter-ish we will be able to announce,” Zaggotta said, without naming the banks.
This development has emphasized the massive difference in the regulatory approach to the novel industry between the EU and the US. While one seems to be becoming increasingly more welcoming, the other is pushing the crypto companies away from its own and into other jurisdictions.
Specifically, the European Union made a major step for the cryptokind with the passing of its Markets in Crypto Assets (MiCA) regulations. The groundbreaking regulatory framework was signed into law by the EU officials earlier this year.
The US paints a very different picture: the regulators there have moved to crack down on the industry, with the companies complaining for years about the lack of clear regulations – if the rule is unclear, how is one to follow it?
This is why many companies are looking into relocating – or have already done so – to more crypto-friendly jurisdictions with clearer regulations, mostly in Asia and Europe. Singapore and Hong Kong have been often recently named among popular destinations.
In early August, the oldest cryptocurrency exchange said it would “permanently” halt trading of seven altcoins for its users based in the United States.
The move could have been related to the US Securities and Exchange Commission‘s (SEC) actions, as the regulator had classified all seven tokens as unregistered securities in its complaints against exchanges Binance and Coinbase.
In late August, Bitstamp announced it would terminate the ETH staking service for US users, citing the “current regulatory dynamics in the US.”
Meanwhile, that same month, there were reports that Bitstamp was in talks to raise fresh funding for operations, including launching derivatives trading in Europe next year and expanding the number of markets it serves in Asia, as well as its operations in the UK. It reportedly started the fundraising process in late June, with Galaxy Digital Holdings acting as an adviser.
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Learn more:
– Bobby Zagotta, US CEO of Bitstamp, on US Crypto Regulation, The Banking Crisis, and Web3 Innovation
– Bitstamp, Interactive Brokers Receive FCA Nod for UK Crypto Operations
– Ripple Purchases Bitstamp Shares as it Ponders Further M&A
– US Crypto Firms Migrate to Bermuda Amid Regulatory Concerns
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