Bitstamp, one of the longest-operating cryptocurrency exchanges, is set to introduce regulated crypto derivatives trading in Europe, according to sources familiar with the situation.
Known for its strong compliance focus, Bitstamp is among a select group of crypto exchanges that hold a Markets in Financial Instruments Directive (MiFID) license, a European regulatory framework for trading securities and derivatives. The framework was updated in 2022 to include crypto assets. “Leveraging its MiFID license in Europe, Bitstamp is preparing to offer a fully regulated perpetual swap product,” one of the sources revealed.
The growing regulatory clarity around crypto and tokens in Europe has paved the way for other firms with MiFID II licenses, such as Point72 Ventures-backed D2X and Backpack Exchange (which is acquiring FTX EU’s assets and licenses), to also introduce crypto derivatives trading.
Currently, the majority of crypto derivatives trading occurs offshore, and these new entrants aim to challenge the market dominance of centralized exchanges like Panama-based Deribit.
In June of the previous year, it was announced that fintech leader Robinhood would acquire Bitstamp, signaling a bright future for the exchange in both Europe and the U.S., where it holds several state licenses, including the sought-after New York State BitLicense. Bitstamp declined to comment, as these plans are not yet public.
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