The cryptocurrency bear market is in play, and Bitstamp’s CEO said it has given the company the opportunity to build.
Bitstamp CEO Jean-Baptiste Graftieaux has revealed in a recent interview that the ongoing crypto winter has allowed the company to build. Bitstamp is a cryptocurrency exchange based in Luxembourg and one of the leading trading platforms in Europe.
When asked about the ongoing crypto winter, Graftieaux said;
“Crypto winter for a company like Bitstamp is a good period for us to build up our capabilities to prepare for the next bull run with new products and new features. We have a very active licensing journey across all the regions – 10 in progress globally.
Over the next couple of quarters we will increase our regulatory footprint, so we are in a strong position to fully participate in the next bull run.
The second point is that we see a strong trend on the institutional side. Many institutional companies are looking to make their first move into crypto – there is massive crypto interest from our institutional clients.”
The cryptocurrency regulation in Europe remains unclear and this continues to affect businesses. However, Graftieaux believes that the incoming MiCA regulation will make it easier for crypto companies to carry out their operations. He said;
“What we are experiencing today is not very smart in Europe. For example, if you want to operate a crypto business, you need to register with each country separately as a virtual asset service provider. Each country has its own requirements.
So with MiCA coming in 18 to 24 months, that will be a game-changer because there will be a level playing field. There will be one country where you can establish your activities as MiCA-compliant and then passport the activities across the different European countries.”
The Bitstamp CEO added that he expects further regulation in the stablecoin ecosystem following UST’s crash in May this year. He commented that;
“Recent developments mean that if we want to regain the trust from retail clients and the next wave of investors, transparency is very important and this is my second point.
Audited stablecoins with a high level of transparency around their mechanisms and the protections they are offering, risk management and controls etc, will be the key for the success of stablecoins to enable them to last within the ecosystem.”
Graftieaux also discussed various issues including decentralised finance, nonfungible tokens (NFTs) and the metaverse.
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