The world’s longest-running crypto exchange Bitstamp is in discussions with three prominent European banks to offer crypto services. These talks aim to facilitate the banks in providing these services, potentially starting in the first quarter of 2024. Cryptonews reached out to Bitstamp for official comments regarding the matter.
In a statement to CoinDesk, Robert Zagotta, Bitstamp’s Global Chief Commercial Officer and CEO of the US division, revealed that they have witnessed a significant surge in inquiries from major European banks over the last 6 to 9 months. These inquiries pertain to Bitstamp’s “Bitstamp-as-a-service” offering, a white-label licensing and technology service that enables banks and fintech firms to facilitate the buying and selling of cryptocurrencies. Zagotta mentioned that advanced conversations are ongoing with three well-known banks in Europe, and he believes that the official announcement can be expected in the first quarter of next year. However, the names of the banks involved were not disclosed at this time.
Divergent Regulatory Approaches
This development underscores the contrasting regulatory approaches between the European Union (EU) and the United States (US) towards the cryptocurrency industry. While the EU appears to be increasingly welcoming, the US has exhibited a more stringent stance, causing crypto companies to seek alternative jurisdictions with clearer regulations, primarily in Asia and Europe. This trend emphasizes the need for proactive regulatory frameworks.
Specifically, the EU made significant progress for the crypto industry with the introduction of its Markets in Crypto Assets (MiCA) regulations. These groundbreaking regulations were passed into law earlier this year, indicating the EU’s commitment to fostering a favorable environment for cryptocurrencies.
In contrast, the US regulatory landscape has been characterized by uncertainty and a crackdown on the industry. Many companies have voiced concerns over the lack of clear regulations, which hinders compliance efforts. As a result, numerous companies have already relocated or are considering relocation to crypto-friendly jurisdictions with more definitive regulations, with Singapore and Hong Kong emerging as popular destinations.
Bitstamp’s Recent Developments
In recent months, Bitstamp has made several strategic decisions in response to the evolving regulatory landscape. In early August, the exchange announced the permanent cessation of trading for seven altcoins for its US-based users. This move may have been prompted by actions taken by the US Securities and Exchange Commission (SEC), as the regulator categorized these seven tokens as unregistered securities in its complaints against exchanges Binance and Coinbase.
Furthermore, Bitstamp decided to terminate the Ethereum (ETH) staking service for its US users, citing the “current regulatory dynamics in the US” as the primary reason. These decisions highlight the challenges faced by crypto companies in the US market due to regulatory uncertainties.
However, despite these challenges, Bitstamp is actively seeking opportunities for growth. In the same month, reports indicated that the exchange was in talks to secure fresh funding, with plans to launch derivatives trading in Europe next year and expand into new Asian markets, alongside further expansion of its operations in the UK. To pursue these initiatives, Bitstamp initiated the fundraising process in late June, with Galaxy Digital Holdings assuming the role of advisor.
