Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Bitstamp have gotten their European Union CASP License approval for MiCA from Luxembourg.
Luxembourg Approves Bitstamp CASP License for MiCA
The nation of Luxembourg have given approval to the Bitstamp exchange for their Crypto Asset Service Provider (CASP) license under the European Union’s Markets in Crypto-Assets (MiCA) regulation. It will make Bitstamp, the world’s longest-running cryptocurrency exchange, one of the first major exchanges to unlock full EU crypto passporting rights under MiCA and thus allowing them to bridge traditional finance and digital assets under a single regulatory roof.
The announcement was made on May 16 as Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), granted the license. Less than a year ago Bitstamp managed to obtained their MiFID license for operating a Multilateral Trading Facility (MTF) and this move adds to their growing regulatory milestones.
As part of the MiCA regulations, which were passed in 2023, are the first major effort to create a unified crypto framework across all 27 EU countries. As part of the key provisions , such as needing the CASP license which began in 2024 and requires crypto firms to register with a regulator in one member state and meet strict compliance standards, a number of exchanges have already moved to align with the requirements. Regulators such as Germany’s BaFin and France's AMF have been working with the European Securities and Markets Authority (ESMA) to coordinate enforcement.
Firms which are licensed under MiCA have the ability to operate across the entire European Economic Area (EEA) through the “passporting” system, provided they meet disclosure, AML/KYC, and operational requirements. This means that Bitstamp’s approval comes as the EU accelerates its push to regulate crypto markets in line with traditional financial systems. A number of exchanges, such as BitGo and OKX are already in the process of looking to secure MiCA licenses in various member states across the EEA. Some other exchanges are restructuring to remove non-compliant offerings to be able to bid for the license.
Bitstamp’s newly granted CASP license covers core activities including operating a crypto trading platform, executing orders on behalf of clients, and the custody of crypto-assets to users across Europe. According to the press release Bitstamp will continue to pursue new licenses in “key jurisdictions” and grow its offerings for both retail and institutional investors. They have enhanced stablecoin offerings in line with MiCA rules, which meant that are required to have obligations around reserve backing and issuer transparency.
https://x.com/Bitstamp/status/1923280282121113920
Bitstamp currently employs about 180 people in compliance, regulation, and risk management roles. They are tasked with making sure the exchange in compliant in the jurisdictions they operate within, and they make up around 30% of the total workforce at Bitstamp. The level of staffing in this area shows the platform’s commitment to meeting audits and legal requirements without delay.
Have a great day.
Peace. CryptoGod-1.
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