Bitstamp

Is Bitstamp safe?

Bitstamp is one of the more conservative choices among crypto exchanges. It has been running since 2011, it holds a New York BitLicenseBitLicenseNew York's licence for crypto businesses, issued by the state's financial regulator (NYDFS). It is one of the strictest crypto licences in the US.More in the glossary and was the first exchange licensed under the EU's MiCAMiCAThe EU's Markets in Crypto-Assets Regulation, which requires crypto exchanges and other providers to be licensed and supervised.More in the glossary rules in Luxembourg, and it has no major fines to its name. We score it 83/100, just behind Kraken.

Its weak point is old and well documented: a 2015 hot-walletHot walletA crypto wallet connected to the internet, such as an app or an exchange's online wallet. It is convenient, but more exposed to hacking.More in the glossary hack. Customers did not lose money. Since mid-2025 it has also had a large owner, Robinhood.

What happened in the 2015 hack

At the start of January 2015, Bitstamp suspended trading after noticing that its hot walletHot walletA crypto wallet connected to the internet, such as an app or an exchange's online wallet. It is convenient, but more exposed to hacking.More in the glossary, the small part of its funds kept online, had been emptied. Close to 19,000 BTC was gone, worth about $5.3 million at the time.

A leaked incident report later showed how it happened. Attackers had researched six Bitstamp employees and targeted them over email and Skype. A system administrator with access to the hot wallet opened a fake application form that installed remote-access malware, and the attackers copied the wallet file and its passphrase.

Because most coins were in cold storageCold storageKeeping crypto keys on a device or medium that is not connected to the internet, which protects them from most online attacks.More in the glossary, Bitstamp could absorb the loss. It said every customer balance held before the suspension would be honoured in full, and reopened within about a week on a rebuilt system. Under our rubric, a hack with full reimbursement caps security history in the 70s; with more than a decade since, we put it at the top of that band.

Licences

Bitstamp's pitch has long been regulation, and that holds up:

Jurisdiction	Licence
EU	MiCAMiCAThe EU's Markets in Crypto-Assets Regulation, which requires crypto exchanges and other providers to be licensed and supervised.More in the glossary CASPCASPA crypto-asset service provider: a firm licensed under the EU's MiCA rules to offer crypto services such as trading or custody.More in the glossary licence from Luxembourg's CSSF for Bitstamp Europe S.A. (15 May 2025)
Luxembourg	Payment institution licence
Slovenia	MiFID investment firm licence (Bitstamp Financial Services)
United States	NYDFS BitLicenseBitLicenseNew York's licence for crypto businesses, issued by the state's financial regulator (NYDFS). It is one of the strictest crypto licences in the US.More in the glossary for Bitstamp USA (April 2019) and state money transmitter licences
United Kingdom	FCA cryptoasset registration (Bitstamp UK Limited)
Singapore	Regulated by the MAS (Bitstamp Asia)

Robinhood said Bitstamp brought more than 50 active licences and registrations when the deal closed on 2 June 2025.

Reserves and custody

This is where Bitstamp is less transparent than its reputation suggests. It does not publish a Merkle-treeMerkle treeA way to combine many records into one short code, so that each person can check their own record is included without seeing anyone else's.More in the glossary proof of reservesProof of reservesA report in which a crypto exchange shows that it holds enough coins to cover all customer balances, ideally checked by an outside firm.More in the glossary, so you cannot check that your own balance is counted, and its stand-alone accounts are not broken out in detail in public. Its numbers are, however, now part of Robinhood's audited financial statements, filed with the SEC.

On custody, MiCAMiCAThe EU's Markets in Crypto-Assets Regulation, which requires crypto exchanges and other providers to be licensed and supervised.More in the glossary and Luxembourg payment rules require client funds to be kept separate from the company's own money. Bitstamp says most crypto is held offline. Unlike the rest of Robinhood, it also uses outside custodians: Robinhood's 2025 annual report says Bitstamp safeguards its private keys "internally and with custodians", which adds a third party to the chain. Having a listed parent with billions in capital is also a cushion, though not a legal guarantee for Bitstamp customers.

What changes under Robinhood

So far, the exchange runs under its own name and licences. Robinhood uses Bitstamp to serve institutional clients and to expand in Europe and Asia. For customers the practical effect is a larger, better-capitalised owner and audited group accounts. The flip side is that Bitstamp's fate is now tied to a broker whose own crypto business has paid fines in the US.

Who Bitstamp suits

Bitstamp lists fewer coins than offshore rivals and offers no high-leverage derivatives to retail customers in most markets. For a European or US saver who wants to buy bitcoin or ether from a licensed, long-established company and then withdraw it, that narrow focus is a safety feature rather than a drawback. If you need obscure tokens or futures, you will have to accept a less regulated venue and more risk.

How to keep a Bitstamp account safe

1. Use an authenticator app or security key for two-factor authenticationTwo-factor authenticationSigning in with a second proof of identity on top of your password, such as a code from an app, a security key or a passkey.More in the glossary, not SMS.
2. Turn on the withdrawal address whitelist so funds can only go to addresses you have approved.
3. Watch for emails that copy Bitstamp's style and ask you to "verify" your wallet. The 2015 hack itself started with a phishing message.
4. Keep only what you trade on the exchange. Move long-term holdings to a wallet you control.

How we scored it

Licensing (92) is Bitstamp's best factor, and legal record (85) is clean by industry standards. Security history (79) reflects the 2015 hack that was fully covered, and reserves (80) lose points because there is no public proof of reservesProof of reservesA report in which a crypto exchange shows that it holds enough coins to cover all customer balances, ideally checked by an outside firm.More in the glossary you can verify yourself. Confidence is medium because Bitstamp's custody and financial detail is less public than that of listed exchanges.