Swiss and Singapore-based digital asset bank Sygnum has announced the expansion of its operations into Europe following the acquisition of a crypto license in Liechtenstein.
In a statement released on Monday, Sygnum confirmed that it has registered a local subsidiary with the Liechtenstein Financial Market Authority (FMA). This registration enables the bank to provide regulated services, including brokerage, custody, and B2B banking, specifically tailored for the Liechtenstein market.
Strong Performance in 2024
In July, Sygnum reported a profitable first half of 2024, driven by robust business growth. The bank recorded a remarkable 500% increase in crypto derivatives trading and a doubling of crypto spot trading volumes compared to the same period in 2023.
Looking ahead, Sygnum plans to further its European expansion in Q1 2025, aligning with the forthcoming Markets in Crypto-Assets Regulation (MiCA). This landmark legislation aims to create a transparent and secure environment for crypto investors across the Eurozone.
Plans for Broader European Reach
In the first quarter of 2025, Sygnum intends to significantly enhance its regulated presence by opening a new office and obtaining additional licenses within the European Union (EU) and the European Economic Area (EEA), which includes 30 countries.
The newly acquired crypto license in Liechtenstein positions Sygnum to leverage the country’s favorable regulatory landscape, which is also in sync with the upcoming EU regulations, including MiCA.
Embracing Innovation in Liechtenstein
Martin Burgherr, Sygnum’s Chief Client Officer, expressed excitement about the bank’s entry into Liechtenstein, highlighting the country’s reputation for fostering financial and digital asset innovation. He noted that this registration lays the groundwork for Sygnum to enhance its regulated presence in the EU, recognized as the world’s largest trading bloc.
Liechtenstein: A Hub for Digital Assets
Since the implementation of the Token and Trusted Technology Service Provider Act (TVTG) in early 2020, Liechtenstein has emerged as a prominent hub for blockchain and digital assets. This regulatory framework has positioned Liechtenstein alongside Switzerland as a leader in digital asset regulation.
Sygnum is preparing for full compliance with the MiCA Regulation, which Liechtenstein will incorporate into its legal framework by early 2025. This compliance will grant Sygnum access to all EU and EEA markets, significantly broadening its European reach.
Future Expansion into Hong Kong
Sygnum has plans for global expansion, eyeing entry into the Hong Kong market and further growth in Asia through its Singapore Major Payment Institution License. In 2022, the bank established a presence in Luxembourg, Europe’s largest fund market, and initiated services in Abu Dhabi.
In January 2024, Sygnum successfully raised over $40 million in an oversubscribed funding round, elevating its valuation to $900 million. The bank has reported continued profitability in the first half of 2024, making headlines with the issuance of a $50 million Bitcoin-backed loan to a crypto lending platform, solidifying its leadership in regulated digital asset banking.
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