Buzz Over Potential Bitstamp Buyout
Bitstamp currently sits as the 11th ranked cryptocurrency exchange by volume. The company emerged in Slovenia in 2011, created by Nejc Kodrič (CEO) and Damijan Merlak, but now is based in Luxembourg. In April 2016, Bitstamp was granted license in the European Union (EU) as a payment institution, which allows the exchange to do business with all 28 associated states within the EU.
Recent reports suggest suggest that Bitstamp may soon accept a purchase offer from South Korean investors, of approximately $400M USD. One notable Tweet came from Nathaniel Popper, a New York Times writer specializing in tech and finance, who is also a published author on the topic of Bitcoin. Popper stated:
As South Korea has been both leading the way in the adoption of cryptocurrency, and in the fear of strong government regulation, some Bitstamp users have expressed concern over having the EU-based exchange, being handed over to a country with a potential new set of regulations:
These concerns were met with this sentiment by another crypto-enthusiast on Twitter:
This will likely pose the most concern for current Bitstamp users, as their ability to operate smoothly within the regulation of the EU is big advantage, a full relocation of the operations to South Korea will place large unknowns on regulation and operations of the exchange. As this deal is still pending, we will need to wait and see how the Bitstamp and the South Korean investors move forward with this impactful decision.