Bitstamp, one of the longest-standing bitcoin exchanges and the leading Europe-based bitcoin exchange, announced that Luxembourg has granted the company a license as a fully regulated Payment Institution. The license has been signed by Luxembourg’s Minister of Finance Pierre Gramegna. Bitstamp will become the first fully licensed bitcoin exchange in Europe, going into effect on July 1st, when the company will be fully operational from their new headquarters in Luxembourg. (Photo: Bitstamp cofounders Nejc Kodric and Damian Merlak © Forbes / Coindesk)
Bitstamp is a most welcome addition to Luxembourg’s Fintech ecosystem. – says Pierre Gramegna, Luxembourg’s Minister of Finance
The first fully licensed bitcoin exchange in Europe
The news is the result of a rigorous application process with the Luxembourg financial regulator, the Luxembourg Financial Industry Supervisory Commission (known as CSSF) spanning nearly two years, which included security reviews in addition to an audit by Ernst & Young Luxembourg. Bitstamp’s license is passportable into the 28 EU member states providing all European customers with a robust, secure platform for bitcoin trading.
Bitstamp has simultaneously launched BTC/EUR trading to better serve the European markets. Bitstamp is offering free trading in BTC/EUR for both new and existing customers for the first seven days.
History of Furthering Innovation
Luxembourg’s Minister of Finance Pierre Gramegna stated, “Luxembourg has a long-standing history as an international leader in innovation. That Bitstamp has chosen Luxembourg as its European hub only strengthens that reputation. I believe this announcement marks a milestone for bitcoin and digital finance in Europe. Bitstamp is a most welcome addition to Luxembourg’s Fintech ecosystem.”
Bitstamp’s decision to headquarter in Luxembourg comes from the country’s long and established history of fostering innovation. A leader in e-payments and data privacy as well as the European headquarters for many global players including Amazon and PayPal, Luxembourg embodies an exceptionally strong infrastructure and the financial and security awareness Bitstamp was seeking.
Bitstamp becoming the first nationally regulated bitcoin exchange is a historic achievement for digital currency.
Of the significance of Luxembourg’s role, Dan Morehead, CEO of Pantera Capital and chairman of Bitstamp said, “Luxembourg recognizes the economic potential of bitcoin and blockchain technology. It has set an example for other nations to embrace the industry after having conducted heavy due diligence of the technology and of Bitstamp as a company. Bitstamp becoming the first nationally regulated bitcoin exchange is a historic achievement for digital currency.”
Commitment to Compliance
This announcement marks the latest demonstration of Bitstamp’s commitment to be at the forefront of regulatory compliance. Bitstamp has led the bitcoin industry on several key security and regulatory decisions, including being the first bitcoin exchange to require full Anti-Money Laundering/Know Your Customer protocols and to implement highly secure multi-signature accounts.
“We have put a lot of time and resources into the regulatory process with the goal of ensuring customers feel more confident in using Bitstamp’s exchange and products across the European Union,” said Nejc Kodric, co-founder and CEO of Bitstamp. “We are proud to have taken this important step for our customers and the digital currency/blockchain industry globally.”
New and current Bitstamp customers can now use the platform knowing that the company and its services have achieved the highest levels of security and consumer protection previously only recognized in traditional financial institutions.