Bitstamp, among the longest-standing bitcoin exchanges, announced on Monday that the Grand Duchy has licensed the company as a fully regulated Payment Institution.
Signed by Luxembourg Minister of Finance, Pierre Gramegna, the license will enable Bitstamp to become the first fully licensed bitcoin exchange in Europe as of 1 July 2016, when the company will be fully operational from its new headquarters in Luxembourg.
Valid in all 28 EU Member States, the license is the result of a nearly two-year long application process with the Luxembourg Financial Industry Supervisory Commission (CSSF), comprising, amongst others, security reviews and an audit conducted by Ernst & Young Luxembourg.
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.
"Luxembourg has a long-standing history as an international leader in innovation," commented Minister Gramegna. "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 additon to Luxembourg's Fintech ecosystem."
Bitstamp cited the choice of Luxembourg as its headquarter as due to the country's strong infrastructure, with CEO of Pantera Capital and chairman of Bitstamp, Dan Morehead, stating: "Luxembourg recognises 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."
Other achievements by Bitstamp include 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," concluded Nejc Kodric, co-founder and CEO of the company. "We are proud to have taken this important step for our customers and the digital currency/blockchain industry globally."
Photo by Bitstamp
