Bitstamp, the world’s longest-running cryptocurrency exchange, has achieved a significant milestone after being awarded a MiFID Multilateral Trading Facility (MTF) licence
The licence, formally granted by the Securities Market Agency in Slovenia to Bitstamp Financial Services, shows the increasing maturity of the crypto industry and will allow Bitstamp to offer more sophisticated products to its institutional and retail customers.
Crucially, Bitstamp is now authorised to offer crypto derivatives products, including perpetual swaps. In combination with Bitstamp’s highly efficient spot exchange, these can provide investors with the opportunity to maximise capital efficiency when trading as well as gain exposure to crypto without the need for direct ownership.
MiFID regulation regulates traditional financial markets within the EU. It is a framework which covers stocks, securities, derivatives and applies to trading platforms, investment managers and investment banks.
Bitstamp is among the first cryptocurrency exchanges to receive a MiFID MTF licence, meaning that through Bitstamp, investors will be able to trade EU-regulated crypto derivatives.
The licence demonstrates the strength of Bitstamp’s security and safety mechanisms, corporate governance, internal regulatory and anti-money laundering controls, and client protection. It also further confirms Bitstamp’s compliance with stringent capital requirements.
Jean-Baptiste Graftieaux, Global CEO of Bitstamp, said: “We’re immensely proud to be one of the first cryptocurrency exchanges to be granted the MiFID MTF licence. Not only is it a testament to our safety, security, trustworthiness and compliance – but it is also emblematic of the industry’s increasing maturity as a whole.
“With this licence, Bitstamp will be able to offer derivatives products to investors, helping to usher in a trading ecosystem that supports a range of trading and investment strategies; including helping institutional investors achieve increased capital efficiency.”
Bitstamp, which was founded in 2011, has become one of the most trusted and regulated cryptocurrency exchanges in the world. Bitstamp Financial Services is an entity of Bitstamp.