Swiss crypto bank Sygnum secures license in Liechtenstein for EU expansion

Swiss crypto bank Sygnum secures license in Liechtenstein for EU expansion

Sep 23,2024

Swiss crypto banking group Sygnum told CryptoSlate that it has secured a crypto license in Liechtenstein via its local subsidiary.

According to a Sept. 23 statement, the firm said its Liechtenstein subsidiary Sygnum Europe AG had been registered with the country’s Financial Market Authority (FMA) as a service provider under the Token and Trusted Technology Service Provider Act (TVTG).

This license enables the firm to offer regulated digital asset services, including brokerage, custody, and B2B banking.

Strategic entry into EU

By establishing a presence in Liechtenstein, Sygnum can capitalize on the country’s aligned regulations with the EU, particularly the upcoming Markets in Crypto-Assets Regulation ( MiCA ).

The MiCA regulation, recently approved by the European Union, aims to create a regulated digital asset environment that protects crypto users while promoting innovation. This framework enables licensed companies to operate across all 27 EU member states and EEA countries like Liechtenstein.

So, the Liechtenstein license positions Sygnum for a planned entry into all 30 EU states and other EEA markets by Q1 2025. Martin Burgherr, the bank’s Chief Clients Officer, said:

“The registration as CASP in Liechtenstein paves the way for a significant expansion of our regulated footprint into the EU, the world’s largest trading bloc.”

In addition to its EU ambitions, Sygnum plans to expand into Hong Kong via its Singapore-regulated digital asset financial services platform. The bank has recently made significant strides in markets like Luxembourg and Abu Dhabi.

Meanwhile, Sygnum’s expansion plans align with its rising profitability. In January 2024, the firm raised over $40 million in an oversubscribed funding round, increasing its valuation to $900 million. Currently, Sygnum holds more than $125 million in core equity capital.

This year, the bank has forged key partnerships with PostFinance for a crypto service and with Hamilton Lane and Fidelity for tokenization projects. Additionally, Sygnum issued a $50 million Bitcoin-backed syndicated loan to Ledn, a crypto lending platform.