As confirmed by Robert Zagotta, Bitstamp, the world’s oldest crypto exchange, is in advanced negotiations with three major European banks to facilitate their entry into cryptocurrency services. This intriguing development demonstrates the contrasting approach by the EU and the US toward the burgeoning crypto industry.
Bitstamp predicts the likelihood of announcing the new partnerships by early 2024. These discussions have grown from a substantial increase in “inbound inquiries” from zenith European banks over the last 6-9 months. The concept centralizes around Bitstamp’s white-label licensing, empowering banks and fintech firms to offer cryptocurrency trading features.
This crossroad underlines the enormous difference in the regulatory approaches to cryptocurrency between the EU and the US. The EU has become more amicable, recently passing a progressive regulatory framework, the Markets in Crypto Assets (MiCA) regulations. In contrast, the US regulatory environment is proving more challenging.
US companies complain about the ambiguous nature of homegrown regulations, pushing crypto firms to find friendlier jurisdictions, predominantly in Asia and Europe. Areas such as Singapore and Hong Kong are frequently reported as popular destinations for crypto-based companies.
Bitstamp’s recent restriction on trading seven particular altcoins for its US users is possibly resultant of grueling moves from the US Securities and Exchange Commission (SEC). Situations like this contribute to an exodus of firms to more crypto-friendly countries with lucid regulations.
Moreover, Bitstamp recently disclosed the termination of its ETH staking service for US users, once again attributing this decision to the “current regulatory dynamics in the US.” All these signs point towards the duality of spectrums where one hand extends an inviting embrace while the other instills uncertainty.
Recent reports also mention Bitstamp’s attempts to raise fresh funding for numerous plans, including debuting derivatives trading in Europe, expanding market reach in Asia, and increasing operations in the UK. With predictions of growth on one side and regulatory hindrances on the other, we’re positioned at a crossroads of the blockchain future.
Navigating this path successfully will require a nuanced understanding of the global regulatory landscape, a focus on compliance, and a firm commitment to strengthening the infrastructure that supports the industry.
Source: Cryptonews
