The oldest crypto exchange registers in Luxembourg as a payment processor

The oldest digital currency exchange in the world, Bitstamp, is going to do business in the European country of Luxembourg. According to the recent announcement, it is soon going to offer its services to crypto traders in that region.

Bitstamp is now a payment institution in Luxembourg

Jean-Baptiste Graftieaux-CEO of Bitstamp-said in an interview:

“We have a combination of engineers and product people who understand crypto or fintech. We also have information security and data protection experts. These are important for us to be best in class in terms of technology and cybersecurity. We also need strong people for customer support. We have real people in our customer service instead of bots, because customers want to work with real people.”

According to the CEO, it is therefore important to be strong both in terms of technology and human resources. Then he talked about why his company decided to settle in Luxembourg. The CEO told:

“When we looked around the European region for places to do business, Luxembourg was the only country with the right incentive to support this innovation. It was still considered an early stage for cryptocurrencies, and there was virtually no regulatory framework. This meant that any company that wanted to become an established exchange had to go to each of the countries where it wanted to operate and help the government establish regulations and permits. Luxembourg is a small country, but very international and connected. It is a good place to do business and work with the local authorities in the sense that everyone knows each other. We worked closely with the government to regulate Bitstamp and figure out what kind of licensing was needed. In the end, we were licensed as a payment institution in Luxembourg.”

Not an easy road

The company has had quite a few problems around the licensing procedures. Graftieaux said the following about it:

“Regulations and permits are important to our company because they increase our credibility in the market. We look forward to the day when it becomes easier to get a license in countries around the world.”

In addition, the company has also been committed to ensuring that audits are conducted correctly and that fraudulent activity is noticed. The CEO stated:

“You can look at a transaction, but you don’t see all the underlying data about the sender and recipient. What you see is that there has been a transaction of one or more Bitcoins (BTC) from one wallet to another or from one address to another, but what you don’t know now is the owner of the wallet or address. Nevertheless, what happens with this address very regularly is that if a fraud or a crime is committed with a bitcoin address, the enforcement agencies will reach out to the different parties to see if they have customers linked to that specific address, and if so, to share that information.”

In short, the company is taking good steps towards the safety of customers, in addition, they are now based in Luxembourg as a payment institution. The choice of Luxembourg had to do with obtaining a license and also the fact that it was the only country that had the incentive to work with Bitstamp.