Sygnum, a digital asset bank headquartered in Switzerland and Singapore, has expanded its European operations by securing a crypto license in Liechtenstein. This regulatory approval allows Sygnum to offer fully regulated services such as brokerage, custody, and B2B banking in Liechtenstein and sets the stage for further expansion into the broader European Economic Area (EEA). The bank’s move aligns with the upcoming Markets in Crypto-Assets Regulation (MiCA), which aims to create a transparent and secure environment for the crypto industry in the Eurozone. This strategic expansion reinforces Sygnum’s position as a leader in the global digital asset banking space.

Sygnum Expands European Presence with Liechtenstein Crypto License

New Regulatory Approval Bolsters European Expansion Sygnum, the Swiss and Singapore-based digital asset bank, announced it has secured a crypto license in Liechtenstein, marking a significant expansion into the European market. The bank has registered its local subsidiary with the Liechtenstein Financial Market Authority (FMA), allowing it to offer regulated services such as brokerage, custody, and B2B banking. This license strengthens Sygnum’s regulated footprint and positions it to capitalize on Liechtenstein’s favorable regulatory environment for digital assets.

Strong Financial Performance Fuels Expansion

Impressive Growth in Crypto Trading Volumes Sygnum’s expansion comes on the heels of a profitable first half of 2024, driven by exceptional business performance. The bank reported a 500% surge in crypto derivatives trading and a two-fold increase in spot trading volumes compared to the same period in 2023. This strong financial momentum has enabled Sygnum to strategically invest in its European operations, positioning the bank to meet the increasing demand for regulated digital asset services across the continent.

Preparing for MiCA Compliance and EU Market Expansion

Adapting to Europe’s New Regulatory Landscape Sygnum’s latest move aligns with its broader strategy to expand into the European market in the first quarter of 2025, in line with the Markets in Crypto-Assets Regulation (MiCA). MiCA, a landmark regulatory framework set to take effect soon, aims to enhance transparency and security within the Eurozone’s crypto industry. Sygnum plans to establish a new office and acquire additional licenses to serve the EU and EEA markets, making it one of the first digital asset banks to align fully with this new regulatory regime.

Capitalizing on Liechtenstein’s Progressive Crypto Regulations

Strategic Entry into a Digital Asset Hub The crypto license in Liechtenstein will allow Sygnum to leverage the country’s progressive regulatory environment and align with upcoming EU regulations, including MiCA. Martin Burgherr, Sygnum’s Chief Client Officer, expressed enthusiasm about the bank’s entry into Liechtenstein, highlighting the country’s reputation for fostering financial and digital asset innovation. This move is seen as a crucial step in Sygnum’s broader strategy to expand its regulated presence within the world’s largest trading bloc.

Liechtenstein: A Leading Hub for Digital Assets

Regulatory Leadership in Blockchain Technology Liechtenstein has established itself as a prominent hub for blockchain and digital assets, thanks to its Token and Trusted Technology Service Provider Act (TVTG), implemented in early 2020. This regulatory framework positions Liechtenstein alongside Switzerland as a global leader in the regulation of digital assets. By securing a license in this jurisdiction, Sygnum is strategically positioned to tap into the broader EEA market, offering its clients regulated access to Europe’s most innovative financial landscape.

Future Compliance with MiCA to Broaden Sygnum’s Reach

Access to EU and EEA Markets by 2025 Sygnum is preparing for full compliance with the MiCA regulation, which Liechtenstein will integrate into its legal framework by the first quarter of 2025. This alignment will provide Sygnum access to all 30 EU and EEA markets, significantly broadening its operational reach within Europe. The move underscores Sygnum’s commitment to expanding its regulated services, reinforcing its status as a key player in the global digital asset banking sector.

Implications for the European Crypto Market

Setting the Stage for Regulated Growth Sygnum’s expansion into Liechtenstein and the broader European market signals a pivotal moment for regulated digital asset banking in Europe. By aligning with MiCA and leveraging Liechtenstein’s progressive regulations, Sygnum is setting a benchmark for other financial institutions aiming to navigate the complexities of the European crypto market. As the demand for secure and regulated digital asset services continues to grow, Sygnum’s strategic positioning will likely play a crucial role in shaping the future of the crypto industry in Europe.