Expanding Cryptocurrency Operations in Europe: Sygnum Obtains crypto License in Liechtenstein
Swiss and Singapore-based digital asset bank Sygnum has announced its expansion into Europe by securing a crypto license in Liechtenstein. This move allows the bank to offer regulated services such as brokerage, custody, and B2B banking to the Liechtenstein market.
In a statement released on Monday, Sygnum revealed that it has registered its local subsidiary with the Liechtenstein Financial Market Authority (FMA), positioning itself to serve the growing demand for crypto-related services in the region.
During the first half of 2024, Sygnum experienced significant growth, reporting a profitable period driven by a surge in crypto derivatives trading and spot trading volumes. This success has fueled the bank's expansion efforts, with plans to tap into the European market in Q1 2025, compliant with the forthcoming Markets in crypto-Assets Regulation (MiCA).
The Geopolitical Landscape of Regulatory Compliance
With the introduction of MiCA, the European Union aims to establish a transparent and secure environment for crypto investors within its member states. Sygnum's strategic move to acquire a crypto license in Liechtenstein aligns with the regulatory environment set forth by both the country and the broader European Economic Area (EEA).
By capitalizing on Liechtenstein's regulatory framework and its alignment with upcoming EU regulations like MiCA, Sygnum is well-positioned to navigate the evolving geopolitical landscape of digital asset banking in Europe.
Liechtenstein as a Digital Asset Hub
Liechtenstein has emerged as a significant player in the global blockchain and digital asset scene, particularly after implementing the token and Trusted Technology Service Provider Act (TVTG) in 2020. This regulatory framework has solidified Liechtenstein's position alongside Switzerland as a leader in digital asset regulation.
Furthermore, Sygnum's focus on achieving full compliance with the MiCA Regulation, slated for integration into Liechtenstein's legal framework by Q1 2025, will grant the bank access to all 30 EU and EEA markets, enhancing its presence in Europe's expanding digital asset sector.
Global Expansion and Financial Milestones
Beyond Europe, Sygnum's expansion plans extend to the Asian market, with intentions to enter Hong Kong and bolster its presence in Asia through its Singapore Major Payment Institution License. In recent years, the bank has also ventured into Luxembourg and Abu Dhabi, showcasing its commitment to global growth and strategic positioning.
In a testament to its financial prowess, Sygnum raised over $40 million in a successful funding round at the beginning of 2024, elevating its valuation to $900 million. The bank's profitability in the first half of the year, coupled with groundbreaking initiatives like issuing a $50 million bitcoin-backed loan to a crypto lending platform, underscore its leadership in the realm of regulated digital asset banking.
