Bitstamp Secures MTF License, Eyes Crypto Derivatives Offerings in EU

• The license grants Bitstamp the ability to provide crypto derivatives products.
• American fintech company Robinhood paid $200 million to purchase Bitstamp.

After reviewing Bitstamp’s application, the Securities Market Agency in Slovenia granted the company a Multilateral Trading Facility (MTF) license. With this authorization, the exchange may provide its retail and institutional customers with more advanced financial products.

Moreover, the license grants Bitstamp the ability to provide crypto derivatives products including perpetual swaps. These contracts enable traders to speculate on the price fluctuations of crypto tokens without worrying about an expiration date. The ability to trade structured products, bonds, commodities, and stocks is another perk of the license.

Bitstamp’s global CEO Jean-Baptiste Graftieaux stated:

“Not only is it [the license] a testament to our safety, security, trustworthiness and compliance – but it is also emblematic of the industry’s increasing maturity as a whole.”

Rising Demand from Institutional Customers

Moreover, exchanges are able to provide a wide variety of financial products in accordance with EU rules via the MTF license. Which is a regulatory framework set up under the EU’s Markets in Financial Instruments Directive (MiFID II).

Furthermore, being one of the first exchanges to operate under the license, Bitstamp brings them one step closer to meeting the demand for crypto derivatives from institutional customers. Also, D2X, located in Amsterdam, is one of many exchanges that are governed by the MTF license.

American fintech company Robinhood paid $200 million to purchase Bitstamp, which was created in 2021. The deal aimed to broaden Robinhood’s crypto services and international presence, especially in Asia, the UK, and the EU. The transaction is anticipated to close in early 2025.

Earlier, challenges for Robinhood’s cryptocurrency products have also surfaced. A Wells notice was sent to the financial technology firm in May by the US Securities and Exchange Commission (SEC). Which accused the company of violating securities laws in relation to its cryptocurrency operations.

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