- Bitstamp will exit the Canadian market in January, coinciding with its expansion into more European countries
- The decision to leave Canada echoes the actions of Binance and Bybit which have both quit the country this year due to tightening regulations
- Bitstamp is actively discussing cryptocurrency services with three European banks, potentially reshaping how traditional EU banks offer digital assets
Crypto exchange Bitstamp is to leave Canada in January and expand into Europe. The exchange revealed yesterday that it will be quitting Canada in January without stating why, with the news coming just a day after it was revealed that the company is seeking licenses to operate in more European countries. Bitstmap believes that the introduction of the Markets in Cryptoassets (MiCA) regulation within the EU will open more institutions up to the prospect of crypto trading, with the company looking to exploit any such growth.
Goodbye Canada…
Bitstamp announced yesterday that it will wind down its Canadian business on January 8, although it gave no reason for this discontinuation. CEO Bobby Zagotta said only that the decision was not one that the company took lightly, adding that the company hoped to be able to serve Canadian customers again in the future.
The reason for Bitstamp’s Canadian exit might be found in the decision given by Binance to leave the country in May, where an “uncertain regulatory environment” was blamed for an “uncontrollable” market, where new recommendations regarding stablecoins and investor restrictions on crypto exchanges had been announced. Margin trading exchange Bybit followed suit the following month, also blaming regulations.
…Hello Europe!
While Canadians may not be able to enjoy Bitstamp’s offerings from next year, Europeans might with the company actively engaging in discussions with three major European banks to roll out cryptocurrency services in 2024. Zagotta disclosed the news in an interview with Coindesk, where he said that the new MiCA regulations are smoothing the path for traditional financial institutions to explore the world of digital assets:
In the last six to nine months, we’ve had quite an increase in inbound inquiries about this offering from large European banks. We are in advanced conversations with three such banks, household name banks in Europe. I think in the first quarter, we will be able to make an announcement.
Should the collaboration between Bitstamp and these European banks come to fruition, it could signify a significant shift in how traditional banking institutions within the EU embrace and incorporate digital asset services into their offerings.
This stands in stark contrast to the current regulatory landscape in the US, and, evidently, Canada, where authorities are adopting a more stringent approach.
