One of the oldest crypto exchanges is preparing for expansion in Europe and Asia
Date: 2023-08-09 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
One of the oldest cryptocurrency exchanges, Bitstamp, is in talks to raise additional capital due to tightening crypto regulation around the world. It is reported by Bloomberg.
The exchange's CEO Jean-Baptiste Graftier said the company began raising capital in late June with the backing of venture capital firm Galaxy Digital Holdings and Mike Novogratz. The crypto platform plans to use the investments to increase its presence in both the European and Asian markets.
It is expected that Bitstamp will enter new Asian regions in the near future, and by 2024 will provide cryptocurrency derivatives trading in Europe. In addition, the exchange plans to expand its presence in the UK.
“Bitstamp is not for sale, and we are not going to actively sell the company. Our current and exclusive priority is to raise money through strategic investors to accelerate the growth of Bitstamp by providing new products and services to retail and institutional crypto clients,” Graftier said.
Crypto regulation in Europe
The news about the expansion of the crypto exchange followed the adoption of laws on the regulation of digital assets in Europe - MiCA (Market in Crypto Assets). The legislation is expected to come into force next year and help make it easier for crypto companies to enter the European market, with crypto transactions coming under scrutiny from 2025.
Once the new regulation comes into effect, crypto exchanges will have to inform regulators about transfers to private wallets if the amount of transferred cryptocurrency is more than €1,000.
Ripple bought a stake in Bitstamp
In May, Ripple became the owner of a stake in Bitstamp. The deal, concluded in March 2023, was mediated by Galaxy Digital. However, the details of the purchase remained unknown.
For the first time, plans to sell a stake in a hedge fund in Bitstamp became known back in early May. Then Galaxy Digital said in a quarterly report that it advised Pantera Capital to sell its stake in the exchange to the American firm Ripple Labs.
