James Lynn, U.K. managing director of blockchain company Billon Group, agreed that the decision might increase confidence in bitcoin exchanges, but would have little impact on the value of bitcoins.
“A degree of additional confidence in bitcoin firms could arise based on this license, but will it impact the day to day flows of bitcoin based on supply and demand? I think that unlikely, and hence also unlikely that the price of bitcoin itself will be impacted directly by the news,” he told CNBC via email.
And while the decision might make bitcoin trading safer, many European may still question the legitimacy of the cryptocurrency.
“The addition of Bitstamp to the ranks of regulated firms, is more of a comment on the security and setup of the firm, rather than the underlying instrument that its dealing with,” he said. “I remain unconvinced that this event will drive systemic change in the acceptance of Bitcoin as a legitimate currency.”
In U.S. trade, bitcoin closed at a four-month high on Monday night at $462.33. Over a year, the cryptocurrency was up 104.46 percent.