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Bitcoin exchange Bitstamp granted MiCA license by Luxembourg regulators.

Oldest cryptocurrency exchange Bitstamp fortifies its stance in the EU market after securing Luxembourg's MiCA license. Acquired by American neobroker Robinhood last year, this move further solidifies its influence in the European crypto sector.

Longstanding cryptocurrency exchange Bitstamp bolsters its standing in the EU market with the...
Longstanding cryptocurrency exchange Bitstamp bolsters its standing in the EU market with the acquisition of Luxembourg's MiCA license. Bought by American neobroker Robinhood last year, Europe's initial crypto trading platform establishes a solid foothold in the region.

Bitcoin exchange Bitstamp granted MiCA license by Luxembourg regulators.

Bitstamp, Now Under Robinhood, Gains MiCA License: A Boost for Tokenized US Shares?

🔗 Bitstamp's new regulatory portfolio shines bright in Europe. After snagging the MiCA and MiFID licenses, the continent's oldest crypto exchange is steaming ahead. But what does this mean for the prospect of tokenized US shares in Europe?

Bitstamp, a subsidiary of Robinhood, seems poised to expand its horizons. In autumn 2024, the crypto exchange had already earned the Mifid license to operate a multilateral trading facility (MTF), priming the pump for trading crypto derivatives. The combination of spot and futures contracts is a tantalizing proposition for professional investors, offering a single-source hedging opportunity.

Earlier this year, Bitstamp secured authorization as a Crypto Asset Service Provider (CASP) from Luxembourg's financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF). Jean-Baptiste Graftieaux, Global CEO of Bitstamp, claimed the move was about boosting investor confidence and demonstrating a commitment to security and quality. Enhancements to the stablecoin offering were made in accordance with regulations, he added.

Regulatory maven Patrick Hansen, from Circle, lauded the Bitstamp license as distinct from others. Bitstamp can run its trading center like a 'normal' Mifid MTF, but for crypto assets. Picture a multilateral order book where customer orders can be matched directly.

Beyond MiCA and Mifid licenses, Bitstamp seeks an EU payment authorization, lining up to cover the entire value chain. A key goal for crypto platforms: facilitating customers by allowing them to fund/custody accounts and move assets smoothly and effortlessly.

However, venturing into the realm of tokenized US shares is another ball game. Robinhood CEO Vlad Tenev hinted at plans for such an offering during a YouTube interview with "Crypto in America." But, does the regulatory framework Bitstamp operates under allow for it?

Well, the MiCA license allows Bitstamp to provide services like trading, custody, and execution of orders for crypto assets across the European Economic Area. However, it primarily focuses on crypto assets and not directly on tokenized traditional financial instruments like US shares.

Meanwhile, the MiFID license, which Bitstamp also holds, governs traditional financial markets, including stocks and securities. While it does provide a framework for trading traditional financial instruments, tokenized US shares may need additional regulatory approvals based on their specific structure and classification.

To offer tokenized US shares, Bitstamp would likely need to ensure compliance with both MiFID for traditional financial instruments and additional regulations specific to tokenized assets. Tokenized shares are a form of security token and might be subject to specific regulatory requirements beyond what MiCA and MiFID cover. For instance, Bitstamp may need to comply with EU securities law (e.g., the Prospectus Regulation) if the tokenized shares are considered securities.

In brief, while Bitstamp's MiCA and MiFID licenses offer a robust regulatory foundation, offering tokenized US shares would likely necessitate additional regulatory compliance and approvals specific to security tokens or tokenized financial instruments. So, keep a keen eye on Bitstamp as it continues to tread new territory in the tokenized financial arena!

The MiCA and MiFID licenses acquired by Bitstamp provide a strong foundation for its operations in Europe, especially in the crypto asset industry. However, to venture into offering tokenized US shares, Bitstamp may need to comply with additional regulatory approvals, as tokenized shares are a form of security tokens that may be subject to specific requirements beyond what MiCA and MiFID cover, such as the Prospectus Regulation.

Investing and financial communities watch closely as Bitstamp explores the tokenized financial business, aiming to facilitate smooth and effortless fund transfers and custody for its customers in the future.

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