Bitstamp has received a MiFID Multilateral Trading Facility (MTF) license from Slovenia’s Securities Market Agency. This license will enable the exchange to offer more sophisticated financial products to its institutional and retail clients.
Under the license, Bitstamp is now authorized to offer crypto derivatives products, such as perpetual swaps, which are financial derivatives contracts that allow traders to speculate on crypto tokens price movements without an expiration date. The license also opens doors for the trading of stocks, commodities, bonds and structured products.
“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,” Bitstamp’s global CEO Jean-Baptiste Graftieaux said in a statement.
Source: Bitstamp
The MTF license is a regulatory framework established under the European Union’s Markets in Financial Instruments Directive (MiFID II), enabling exchanges to operate in a regulated environment with the ability to offer a diverse array of financial products in compliance with EU regulations.
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The move places Bitstamp closer to institutional clients’ demand for crypto derivatives as one of the first exchanges to operate under the license. Among other exchanges regulated under the MTF license is Amsterdam-based D2X.
Bitstamp, founded in 2021, was recently acquired by United States-based fintech Robinhood in a $200 million deal. The transaction — expected to close in early 2025 — sought to expand Robinhood’s crypto offerings and global reach, particularly in Asia, the United Kingdom, and the European Union.
Robinhood has also faced challenges regarding its crypto offerings. In May, the fintech company received a Wells notice from the US Securities and Exchange Commission (SEC) alleging securities violations related to its crypto business.
The growing demand from institutional investors is attracting more exchanges to launch crypto-tied products. In early October, the Chicago Mercantile Exchange (CME) Group debuted its Bitcoin Friday Futures (BFF), disclosing a record first-day trading volume of over 31,498 contracts traded across two contract weeks.
Related: Hong Kong to align crypto OTC derivative rules with European standards