In an exclusive interview with crypto.news, Bitstamp US chief executive shares his view on how MiCA could pave the way for similar regulatory frameworks in the U.S.
The European Union’s landmark regulation for the increasingly high-profile crypto sector came into full force in late December 2024. The Markets in Crypto-Assets Regulation — simply known as MiCA — is a set of rules designed to regulate the crypto market across E.U. member states.
For example, it requires crypto businesses to get licenses to operate throughout the E.U., sets up rules to protect consumers, and lays out how stablecoins should be issued. MiCA also brings in requirements for capital, anti-money laundering, and transparency. In short: crypto firms now have to meet standards similar to those of traditional financial institutions.
The idea is to bring more legal clarity and consumer protection while promoting innovation in the crypto space. However, some worry that the regulation brings more trouble than good. For context, Tether chief executive Paolo Ardoino earlier alarmed that MiCA’s regulatory move puts banking systems and the use of stablecoins in the European bloc at a “systemic risk” as the law now requires stablecoin issuers in Europe to keep at least 60% of their reserves in Europe-based bank accounts.
Crypto.news sat down with Bitstamp US CEO Bobby Zagotta to discuss the implications of the regulations for the crypto industry, how it will affect exchanges like Bitstamp, and whether the regulation could push more retail investors toward decentralized finance platforms.
CN: Some stablecoin giants worry that MiCA brings more trouble than good. Tether’s (USDT) and PayPal’s (PYUSD) will no longer be available for Bitstamp’s European clients. Don’t you think these limitations might push retail investors toward DeFi, where regulatory scrutiny isn’t as tight?
BZ: No, we welcome MiCA and the clarity it will bring to the market. Bitstamp offers stablecoins in Europe that retail investors can transact with, which allows customers to move funds quickly and at a low cost. We also have USD Coin (USDC), Euro Coin (EURC) and EUR CoinVertible (EURCV), to name a few MiCA-compliant stablecoins.
Bitstamp provides retail investors with assets from the longest-running, most trusted, and regulated exchange in the world. MiCA provides clarity for the exchanges and investors themselves, making the market run more efficiently and we will continue to work proactively with Europe’s regulators.
CN: Do you expect the U.S. to follow Europe with a MiCA-like framework, or do you see the American market taking a different approach?
BZ: My hope is that the current U.S. administration prioritizes this topic in order to provide the American crypto market with the same, much needed, regulatory clarity as is taking hold in the E.U. MiCA can serve as an example of how and why cryptocurrency businesses need regulatory frameworks in order to operate effectively and efficiently.
There are signs and recent executive orders that signal that the current administration will indeed provide that clarity. I’m optimistic for the future.
CN: Some argue that MiCA gives an advantage to banks and traditional financial institutions over crypto-native firms. Do you think these regulations level the playing field or make it harder for exchanges like Bitstamp?
BZ: While rising tides raise all boats, Bitstamp has taken a proactive stance on compliance for years and has invested heavily, with almost 30% of our team performing compliance, regulation, legal, risk management, security, and internal audit functions — ensuring that all our operations and decisions align with regulatory standards.
Many companies similar to Bitstamp in the crypto space could have and can still invest in a compliance-forward approach.
We view the introduction of the Markets in Crypto-Assets regulations as a positive step for the cryptocurrency market. These regulations provide much-needed clarity and establish a level playing field for all participants in the crypto space.
By ensuring that all entities adhere to the same rules, MiCA fosters a more transparent and secure environment. This increased transparency and security are expected to promote trust and confidence among both institutions and individual users, which is crucial for the adoption and long-term growth of the cryptocurrency market.
