Switzerland’s Sygnum Secures Crypto License In Liechtenstein, Looking To Expand Operations In EU

Sygnum, a digital asset banking group with headquarters in Zurich and Singapore, has successfully secured a crypto license for its Liechtenstein-based subsidiary.

The new license enables Sygnum to offer regulated digital asset services in the country. The services include brokerage, custody, and banking, under the framework of Liechtenstein’s Token and Trusted Technology Service Providers Act, the bank said in a press release .

The move positions Sygnum to apply for a Crypto-Asset Service Provider (CASP) license under the European Union’s Markets in Crypto-Assets Regulation (MiCA). This can happen once Liechtenstein adopts the regulation, anticipated in the first quarter of 2025.

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Sygnum To Expand Operations In EU With CASP License

Obtaining the CASP license would allow Sygnum to expand its operations across the EU. Furthermore, the company will be able to leverage the harmonized regulatory framework of MiCA. The framework permits licensed companies to operate in all 27 EU member states and countries in the European Economic Area.

“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,” said Martin Burgherr, Sygnum Chief Clients Officer.

📣 News: Sygnum Obtains Crypto Licence in Liechtenstein, Paving the Way for EU expansion

Sygnum has taken a significant step toward its European expansion by registering its local subsidiary with the Liechtenstein financial regulator, FMA.

▪️ Strategic move positions Sygnum for… pic.twitter.com/GnsrXEydfP

— Sygnum Bank (@sygnumofficial) September 23, 2024

With this, Sygnum will join a growing list of firms, including Coinbase and Circle, that are preparing for a broader European presence as MiCA comes into effect.

MiCA is set to provide a unified regulatory environment specifically tailored to the cryptocurrency industry. The framework will offer significant business opportunities for licensed entities.

While Sygnum’s base in Switzerland remains outside the EU framework, the Liechtenstein license offers a gateway to the European market.

Meanwhile, the company’s Singapore subsidiary has received a full license from the Monetary Authority of Singapore, enabling it to provide digital payment token brokerage services. The license was granted four months after initial approval.

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Sygnum Posts Impressive Numbers For First Half 2024

The bank reported a profit in the first half of 2024 and revealed that it holds a record 4.5 billion Francs ($5.11 billion) in client assets.

Sygnum saw profits for the first time in the first half of 2024, achieving triple-digit growth across key business areas.

The Zurich-based bank specialises in crypto services for institutional clients, with its latest settlements system for digital assets helping to fill the void left by crypto-friendly US banks, Silvergate and Signature going under last year.

Meanwhile, Sygnum attributed its strong first half of the year to “strong business performance”, which saw a 500% rise in crypto derivatives trading and more than 360% increase in loan volumes.

On top of the $5.11 billion in client assets, the bank also holds $125m equivalent core equity capital. This comes after a capital raise earlier this year in January. The funding round resulted in a $40 million raise and was over subscribed. Sygnum Bank is currently valued at $900 million.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.