[citation needed] Nejc Kodrič, a widely known member of the bitcoin community, co-founded the company in August 2011 with Damijan Merlak in his native Slovenia, but later moved its registration to the UK in April 2013, then to Luxembourg in 2016.

[citation needed][nb 1] Bitstamp outsourced certain operations to the UK due to the lack of adequate financial and legal services in Slovenia.

[1] When incorporating in the United Kingdom, the company approached the UK's Financial Conduct Authority for guidance, but was told that bitcoin was not classed as a currency, so the exchange was not subject to regulation.

In September 2013, the company began requiring account holders to verify their identity with copies of their passports and official records of their home address.

In addition to providing fee policies, Bitstamp also claimed to conduct audits of their virtual currency holdings.