Bitstamp Secures Key MiCA License

Crypto exchange Bitstamp has received its Crypto Asset Service Provider (CASP) license from Luxembourg’s regulator, the Commission de Surveillance du Secteur Financier (CSSF).

What does MiCA license mean?

The new license clears Bitstamp to legally operate in the European Union’s (EU) Market in Crypto Assets (MiCA) framework.

Bitstamp wrote in an X post, “With this license, Bitstamp is now fully authorized to operate a MiCA-regulated trading platform and provide crypto custody as well as other services in compliance with MiCA, bringing even more trust and transparency to the way you trade.”

Furthermore, the CASP license enables the exchange to execute orders on behalf of its customers, as well as custody crypto assets within the EU. Overall, the new license reflects Bitstamp’s plans to comply with regulatory demands in the EU.

Plus, with few companies licensed under MiCA, the CASP license gives Bitstamp a significant advantage, giving retail and institutional users across Europe easy access to its platform.

Why is MiCA important?

The MiCA framework sets the tone for crypto regulation in Europe, providing clarity for firms seeking to operate within EU member states. MiCA seeks to protect users, minimize risks, and strengthen confidence in crypto assets. MiCA covers everything from KYC compliance to stablecoin guidelines.

For crypto exchanges like Bitstamp, complying with MiCA’s demand shows transparency and a commitment to a higher standard. Although Bitstamp already holds licenses in other nations, the CASP under MiCA proves its compliance objectives.

Platforms that fail to comply with MiCA’s strict demands face penalties such as fines and, in some cases, sanctions. Interestingly, not many crypto platforms have met with MiCA’s guidelines. Earlier this year, Crypto.com secured an in-principle license to operate in the EU. So far, a little above 12 firms have secured the CASP license.

Bitstamp’s CEO, Jean-Baptiste Graftieaux, believes the company’s approval under MiCA’s strict guidelines makes its license even more remarkable. He remarked in a company blog post, “MiCA’s rigor makes Bitstamp’s approval under its regime all the more momentous and will enable us to offer our European customers an incredibly reliable and protected environment for engaging with crypto-assets.”

What’s next for Bitstamp?

With the CASP license secured, Bitstamp plans to focus on expansion across Europe, catering to both retail and institutional investors. The exchange also plans to expand its global products and services.

In a recent update, Bitstamp shared that it had expanded its partnership with Circle to offer secure USDC and EURC trading pairs to Bitstamp’s users. This partnership strengthens Bitstamp’s position as a top exchange for stablecoin trading, especially for cross-border transactions.

Beyond product expansion, Bitstamp is also working on securing regulatory approval in different regions following its recent acquisition by Robinhood, the popular crypto trading app. In a recent interview with the Big Whale, CEO Jean-Baptiste Graftieaux shared insight into the process.

He said, “ We are making progress on the regulatory approval process, which is particularly complex in our case as Bitstamp is overseen by some fifty regulators around the world. Each authority has to approve the change of control. So it’s a long process: each regulator conducts its own investigation.”

When asked if the Bitstamp brand will be absorbed by Robinhood, Graftieaux noted that no final decision has been made. According to him, discussions about brand positioning are on-going, and will ultimately depend on the product, region and market segment.