A lot of crypto exchanges and trading platforms around the world are currently working to expand their business and reach the faraway markets. Bitstamp, a Europe-focused trading platform, seems to have finally managed to do so and reach the US through the state of New York.
According to their new announcement, Bitstamp has received the Department of Financial Services’ BitLicense, which grants it the right to offer its crypto trading services in New York. This is very good news for the Luxembourg-based exchange, which now has an opportunity to tap into the US crypto trading ecosystem, and continue expanding its presence — not only in the US but in the crypto space itself.
The company’s announcement claims that Bitstamp has always embraced regulatory efforts focussing on accountability and transparency. They recognize that these efforts are made towards the expansion of the crypto industry, and for them, getting the BitLicense is a key element in establishing their presence in the US. The exchange also sees this as an opportunity to get closer to US-based institutional investors as well.
Bitstamp goes to the US: How will this affect the company?
US is known for its struggle to understand cryptocurrency, and all eyes are on the regulators, who are still trying to come up with a working regulatory framework. Until that is achieved, every state will follow its own views on the crypto industry, and the state of New York is known to be among the most restrictive ones in the US.
With that in mind, Bitstamp’s success in acquiring the BitLicense is a great move for the company. However, it also means that, in order to get permission, the firm had to adhere to some very strict requirements in regards to consumer protection.
While many in the industry remain critical of the license, Bitstamp stated that the BitLicense proves that their operations satisfy the same high standard followed by traditional financial institutions. The company stated that their goal is to become the most trusted and secure exchange in the world and that they strived to achieve this ever since they opened their doors in 2011.
They also wish to help shape the industry by developing the best practices when it comes to self-regulation and security. After learning how to conduct their business in Europe, they now seek to carry that knowledge to the US, as well as to develop a better environment and impact the industry in a positive way.
Another interesting thing regarding Bitstamp included rumors of it being rather close to finalizing a deal regarding the sale of the company to a gaming firm in South Korea. However, that was almost a year ago at this point, and there were no announcements or any new information regarding the possibility since. This has led to speculation regarding the deal, whether it is still a possibility, or if the idea was dropped for some reason.
Regardless, the expansion to the US serves as proof that Bitstamp is definitely looking to enhance their business and get a stronger grip on the crypto industry by going to the US and offering its services — starting with the state of New York.