Key Insights:
- Sygnum secures a crypto license in Liechtenstein, enabling expansion into the European Economic Area’s regulated digital asset market.
- The bank reports a 500% surge in crypto derivatives trading and plans further European expansion in compliance with MiCA regulations.
- Sygnum’s global reach extends to Asia, with plans to enter Hong Kong and continued growth in Singapore, Luxembourg, and Abu Dhabi.
Swiss-Singaporean digital asset bank Sygnum has expanded its European presence by securing a crypto license in Liechtenstein. This strategic move allows the bank to extend its regulated services, including brokerage, custody, and business-to-business (B2B) banking, in one of Europe’s most crypto-friendly regulatory environments.
Liechtenstein Subsidiary Registered with FMA
On Monday, Sygnum announced that its local subsidiary has been successfully registered with the Liechtenstein Financial Market Authority (FMA). This registration enables Sygnum to operate in Liechtenstein, further strengthening its position within the European Economic Area (EEA). The bank views the crypto license as a gateway to the broader European market, especially with the impending Markets in Crypto-Assets (MiCA) regulation, expected to be implemented in early 2025.
Strong Financial Growth in 2024
Sygnum has been experiencing significant growth, reporting a profitable first half of 2024. The bank witnessed a remarkable 500% increase in crypto derivatives trading and a two-fold rise in crypto spot trading volumes compared to the same period in 2023. As part of its expansion strategy, the bank has planned further penetration into the European market during the first quarter of 2025. This will be achieved in compliance with MiCA, a landmark regulatory framework aimed at making the crypto industry more transparent and secure for investors across the Eurozone.
Leveraging Liechtenstein’s Regulatory Environment
The crypto license in Liechtenstein positions Sygnum to leverage the country’s favorable regulatory environment for digital assets. The jurisdiction is widely recognized as a hub for blockchain and crypto innovation, thanks to the Token and Trusted Technology Service Provider Act (TVTG) enacted in 2020. This legislation has helped establish Liechtenstein as a leader in the global digital asset industry, alongside Switzerland.
By aligning its operations with MiCA and Liechtenstein’s legal framework, Sygnum plans to expand further into the 30 countries comprising the European Union (EU) and the EEA. According to the bank, its Liechtenstein subsidiary will allow it to offer regulated services to investors across these markets, significantly broadening its reach.
Looking Toward Asia and Beyond
Sygnum’s global growth ambitions don’t stop with Europe. The bank has already established a presence in Luxembourg, Abu Dhabi, and Singapore, where it holds a Major Payment Institution License. It also plans to expand into Hong Kong and other Asian markets. Earlier in 2024, Sygnum successfully raised $40 million in an oversubscribed funding round, increasing its valuation to $900 million. The bank also made headlines by issuing a $50 million Bitcoin-backed loan, further solidifying its leadership in the regulated digital asset banking sector.
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