Trust in crypto remains strong despite bear market: Bitstamp survey

September 2, 2022 Coin Telegraph

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Despite the downward market, global trust in cryptocurrencies like Bitcoin remains mostly unshakable, with countries like the U.S. showing more trust in crypto in Q2.

The ongoing cryptocurrency winter has had little to no impact on global trust in crypto, this was the conclusion reached new study commissioned by Bitstamp exchange.

Despite the downward market, global trust in cryptocurrencies like Bitcoin (BTC) remains mostly unshakable, Bitstamp said in its latest Crypto Pulse report. The study is based on a survey conducted by an independent research firm and involves 28,000 retail and institutional investors in 23 countries, Bitstamp said.

The survey suggests that the percentage of global retail investors who find crypto trustworthy has slightly dropped from 61% in Q1 to 65% in Q2 2022. The survey signaled a similar trend among institutional investors as 67% of respondents deemed crypto trustworthy in Q2 versus 70% in Q1.

“Considering that in Q1 we were entering a crypto winter, these numbers are inspiring and speak in favor of the industry’s resilience,” Bitstamp analysts noted.

The crypto trust percentage has varied from country to country, with the United States seeing the single biggest increase in trust, from 61% in Q1 to 73% in Q2, according to the report. In contrast, Canada was the only country that saw trust in cryptocurrency dip below 50% in Q2. Trust in crypto also remained high in countries like Brazil, Chile and Mexico, with trust percentage accounting for 77%, 69% and 70%, respectively.

“We can see that crypto has, for the most part, maintained the trust of many investors and institutions across the world during a difficult time for the sector,” Bitstamp said. In the meantime, some fluctuations in trust in certain countries are certainly to be expected, the firm noted, adding:

“Although trust in crypto has declined slightly in some regions, investors are taking this time to either increase their investment or expand their knowledge of crypto. We believe that improving the market’s knowledge about the digital assets ecosystem is a move in the right direction.”

Bitstamp CEO JB Graftieaux added that the crypto winter will provide an opportunity for both retail and institutional investors to build for the future.

As previously reported by Cointelegraph, the current bear crypto market is associated with an ongoing crisis of cryptocurrency lending, with major lenders like Celsius halting withdrawals amid liquidity issues in June. The crypto winter is also largely linked to issues of algorithmic stablecoins after the TerraUSD Classic (USTC) stablecoin lost its United States dollar peg in May.

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August 24, 2022 Bitcoin.com

Bitstamp cancels ‘inactivity fee’ plans after huge backlash

July 7, 2022 Coin Telegraph

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Bitstamp makes a U-turn on the planned €10 'inactivity fee' against users after widespread criticism, cites administrative fees as the reason for the proposed move.

Luxembourg-based cryptocurrency exchange Bitstamp has scrapped plans to implement an inactivity fee after widespread outcries from users online.

The exchange had previously announced at the end of June that it would enforce a €10 fee on inactive users on its platform with account balances valued at €200 or less from the beginning of August.

The inactivity fee was due to be applied to users of Bitstamp Limited and Bitstamp Global Ltd from 1 August and for customers of Bitstamp Europe S.A. from 6 August. Bitstamp users based in the United States were exempt from the proposed fee, according to the company’s fee schedule.

The move was met with condemnation from users on social media, with prominent cryptocurrency accounts among the chorus of voices hitting out against the exchange’s proposed plans.

This is so disappointing BitStamp

-It’s actually pathetic.

You’re charging the lowest holders approx 5% of their account balance so they are “forced” to trade or stake with you!!??

How is this even legal
https://t.co/DeBicjMIF3
— Crypto Bitlord (@crypto_bitlord7) July 3, 2022

Cointelegraph reached out to Bitstamp to ascertain why the initial decision was taken to implement the inactivity penalty and whether the current downturn across cryptocurrency markets played a role in the now-scrapped move.

A spokesperson from the exchange cited administrative costs incurred by maintaining inactive accounts as the primary reason for implementing the proposed inactivity fee. Bitstamp had been considering the idea since last year while reaffirming that current market conditions did not play a role in the move:

The spokesperson agreed that there was turmoil across the crypto markets but noted that Bitstamp has "zero exposure to any of these companies, that our financial position remains strong and healthy, and that we are continuing to invest in our product and technology.”

The company has since removed the initial announcement from its website and social media accounts but the Bitstamp fee schedule page still reflects the details of the inactivity fee. The company also confirmed that some users had requested to close their accounts after the initial announcement of the proposed fee.

Users that had been inactive for more than a year would have had to buy or sell cryptocurrency on the exchange, make a fiat or cryptocurrency deposit or withdrawal or stake on Bitstamp Earn to avoid incurring the fee.

Bitstamp had planned to deduct €10 from an inactive user's fiat currency balance, or the equivalent amount from their cryptocurrency holdings if their fiat balance was lower than the penalty.

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Head of Bitstamp’s European arm becomes latest CEO of global crypto exchange

May 9, 2022 Coin Telegraph

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Nejc Kodrič, Julian Sawyer and now Jean-Baptiste Graftieaux... It's unclear what led to the latest change in leadership of one of the oldest crypto exchanges.

Bitstamp, one of the oldest crypto exchanges in the world, has announced the appointment of Jean-Baptiste (JB) Graftieaux as its new global CEO following the departure of Julian Sawyer.

In a Monday announcement, Bitstamp said Sawyer, who first became CEO of the crypto exchange in October 2020, “has decided to pursue other opportunities.” Graftieaux took over the position on May 7, having been the Bitstamp Europe CEO since May 2021. According to the exchange, Graftieaux has 20 years of experience in “crypto, payments, and financial sectors,” having first joined Bitstamp in November 2014 as the firm’s chief compliance officer following five years at PayPal.

“JB was with Bitstamp in its early days, and has admirably led our European business over the past year,” said Bitstamp’s board of directors chair Nicolas Huss. “We’re pleased to welcome a CEO with such an impressive track record, and very much look forward to the contribution and perspective he will bring to the company in his new role.”

Jean-Baptiste Graftieaux has joined us as Managing Director of Europe, spearheading our efforts to further strengthen our position as the most reliable cryptocurrency exchange! Previously, he held regulatory positions @PayPal and @eBay. https://t.co/zJZPG1rwRr
— Bitstamp (@Bitstamp) May 19, 2021

Graftieaux will be the third global CEO of Bitstamp after the departure of Sawyer, who took over from the exchange’s co-founder Nejc Kodrič. It’s unclear if Sawyer will continue to work in the digital asset space — his LinkedIn profile at the time of publication showed the former CEO was an honorary senior visiting fellow at City, University of London and a board adviser for neobank Volt.

Founded in 2011, Bitstamp is ranked 11th among crypto exchanges with a daily trading volume of more than $322 million, according to data from CoinMarketCap. In April, the exchange requested its users to update their accounts to identify the origin of cryptocurrencies stored on the platform, in compliance with regulations.

Cointelegraph reached out to Julian Sawyer, but did not receive a response at the time of publication.

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80% of Institutional Investors Expect Crypto to Overtake Traditional Investments, Survey Shows

April 27, 2022 Bitcoin.com

Crypto gaining trust as investment, but still lagging behind other options: Bitstamp report

April 26, 2022 Coin Telegraph

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Uncertainty over regulation remains a key barrier to crypto investing, according to Bitstamp.

Global crypto exchange Bitstamp released its Crypto Pulse survey on Tuesday, concluding that both institutional and retail investors believe crypto will overtake traditional investment vehicles within a decade. Specifically, 80% of the institutional respondents and 54% of the retail investors answered the question in the affirmative.

The survey also polled opinions on whether crypto will see mainstream adoption within the next 10 years. With slightly higher results, 88% of institutional respondents and 75% of retail investors responded affirmatively. This overall bullish attitude came from 28,563 respondents, including 5,450 senior institutional investment strategy decision makers and 23,113 retail investors, from 23 countries.

Crypto powers towards universal adoption. What’s next?

In the first edition of our Crypto Pulse report, you’ll find the answers from 28,615 institutional and retail consumer investors!

Sign up for the full report here https://t.co/ksGYJhUiSr pic.twitter.com/Ab3hQi0kd6
— Bitstamp (@Bitstamp) April 26, 2022

Julian Sawyer, CEO of Bitstamp, said in a statement that cryptocurrency is now at the forefront of mainstream investing. She added:

"We’ve seen interest propel in the years since the pandemic, and crypto is now part of the wider conversation in global macro-economic matters. Our survey shows something we have advocated over a long time: talking about survival of digital assets is firmly over — the question is now about evolution.”

When it came to trusting in crypto as an asset class, 71% of investment professionals and 65% of everyday investors stated that in crypto they trust. When compared to trust in property ownership, shares and stocks, however, crypto is trusted less. For retail respondents, 67% believe crypto is a trustworthy investment, while 11% said that crypto was untrustworthy. And as for decentralized finance, or DeFi, investment vehicles like stablecoins and NFTs, levels of trust went above 60% across retail and institutional investors.

Bitstamp suggested that any hesitation may stem from the lack of regulation around crypto. It added that trust in crypto at a global level is primarily driven by developing countries and unstable economies, where trust in the traditional financial system is low. In the United States, President Joe Biden signed an executive order that addresses a regulatory framework for digital assets in March.

Recently, Bitstamp increased its compliance efforts by requesting its users to provide more data info like nationality, place of birth, tax residency and the source of wealth.

Bitstamp asks users to update the source of their crypto, citing regulatory compliance

April 15, 2022 Coin Telegraph

AML

Bitstamp now requires users to provide info like nationality, place of birth and tax residency, in addition to documents proving the origin of crypto and the annual income.

Major global cryptocurrency exchange Bitstamp continues increasing compliance efforts by requesting its users to provide more data like their source of wealth.

In an email notification to users on Wednesday, Bitstamp informed its customers about the ongoing policy upgrades on the platform, with the exchange seeking additional info about its clients, one Bitstamp user told Cointelegraph.

The email reads:

“We work closely with our regulatory partners to ensure we continue to be your trusted exchange. Towards this, we need your account information to be updated, to provide you with the latest products and crypto assets.”

Bitstamp specifically requested users to update the origin of cryptocurrencies stored on the platform for regulation purposes.

*Info required by Bitstamp. Source: Bitstamp*

The exchange provided an official list of examples of documents clarifying fiat-related sources of wealth of deposited funds, including salary and pension payslips, inheritance documents, payslips for savings, gifts, mining receipts and others. Crypto-related sources include fiat and crypto deposits and withdrawals, login info, work contracts, screenshots, hand-written agreements and others.

The exchange now also requires its customers to provide some legal info like nationality, place of birth and tax residency. Additionally, the exchange requested info like the annual income and net worth, intended activities on the platform, annual deposit estimation as well as the source of assets.

*Info and documents required by Bitstamp. Source: Bitstamp*

Prior to sending the latest notice, Bitstamp reached out to its users on March 30, promising rewards for providing more account info:

“If you want to keep on using our services, you’ll need to update your account as some information is out of date. As a ‘Thank You!’ we will reward you with a $25 bonus once you have completed your account info.”

Those who haven’t updated the account have not only missed the bonus but are also n at risk of not being able to withdraw their funds from Bitstamp at all. According to social media reports, Bitstamp has eventually disabled all cryptocurrency and fiat withdrawals for its European customers who have not proved the origin of their crypto on the platform.

The exchange now reportedly asks users to provide documents of where they got the crypto that they deposited on Bitstamp, which only applies to cryptocurrencies bought at external exchanges.

The community has expressed outrage about the policy changes at Bitstamp, with people complaining about Bitstamp not giving them time to withdraw their crypto before announcing the new rules. “You just can't provide new rules when people have already deposited their crypto. If you want to change the rules of the game, you have at least given them a deadline before,” one Redditor wrote.

“We understand that not everyone is comfortable with providing so much information and we especially understand it is very inconvenient. However, please understand that we have to meet the demands of our regulators if we want to keep providing you with our services,” a Reddit user named “Lucas from Bitstamp” wrote in the thread.

Bitstamp did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.

The latest restrictions on Bitstamp are not the first time when the exchange adopted Know Your Customer (KYC) measures. The firm previously adopted somewhat strict policies for withdrawals by its Netherlands-based users, banning withdrawals to external wallets from unverified addresses.

As previously reported, the European regulators were seeking to amend the European Union’s Transfer of Funds Regulation in late March, proposing to report all crypto transfers above 1,000 euros ($1,086) to relevant authorities.

Additional reporting by Tom Farren.

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