Bitstamp CEO Sees Huge Crypto Interest from Institutions

In a new interview with Business 2 Community, CEO of Bitstamp, Jean-Baptiste Graftieaux, discussed a wide range of crypto matters, covering everything from stablecoins to the regulation, the exchange’s substantial cash pile, how to get tokens listed at one of the oldest and most reputable cryptocurrency exchanges, and rumours of the firm launching an NFT marketplace anytime soon.

Commenting on a survey his company conducted in the UK, the Bitstamp Crypto Pulse Survey Q2 2022, the CEO noted that despite the recent market downturn, crypto remains a trustworthy asset. Nevertheless, awareness and knowledge among the wider public could get a boost. He said:

“In terms of crypto being a trustworthy investment we had a figure of 52% in 2021 – that has fallen to around 42% in 2022. That’s a slight decrease but it’s not dramatic.

“Significantly, we continue to see a lack of knowledge and education as one of the main barriers among retail to investing in crypto – the proportion citing a lack of crypto education has increased from 45% in 2021 to 55% this year.”

Is the Crypto Winter Good for Bitstamp?

The crypto bear market that set in since the start of the year, with a market capitalization being half of what it was last year when cryptocurrencies like Bitcoin and Ethereum recorded all-time highs, was also a topic for discussion. Graftieuax, who started his new role as Bitstamp CEO in May of this year, detailed:

“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.”

Noting that “an unregulated industry is probably the biggest risk”, when looking ahead to the regulatory landscape in Europe, the Bitstamp head said that with MiCa coming into effect in the next two years, this will undoubtedly turn into a game changer:

“What we are experiencing today is not very smart in Europe”, he said about the current situation, adding:

“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.”

NFTs, the Metaverse and Stablecoins

Furthermore, Graftieaux also responded to questions about NFTs and the Metaverse:

“The key question is, is it going to last? I think it will, definitely. We will see NFTs in the metaverse. I am a big fan of NFT communities, where you buy an NFT to become part of a community and you get some utilities from the NFT ownership, for instance in the sport area.”

The collapse of the Terra ecosystem and stablecoins, a hot topic this year, also got some attention during the interview:

“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,” the Bitstamp CEO said.

He added:

“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.”

On Bitstamp’s process of having assets listed on the exchange founded in 2012, Graftieaux said that the company closely follows customer demand, but stressed that the most important thing is liquidity, “to ensure is that when we list an asset on our platform, that we have sufficient liquidity to ensure that our clients can trade the assets with no problems.”