Sygnum, a digital asset banking group headquartered in Zurich and Singapore, has announced that it has obtained a cryptocurrency license in Liechtenstein. This license grants its subsidiary in the country the ability to provide regulated digital asset services, including brokerage, custody, and banking operations. These services will be offered in accordance with Liechtenstein’s Token and Trusted Technology Service Providers Act.
CASP License Awaiting MiCA Adoption
The license enables Sygnum to apply for a Crypto Asset Service Provider (CASP) license under the EU’s crypto asset market regulations.
Like other high-net-worth industries, the financial services sector is subject to strict regulation to help curb illegal activities and manipulation. Each asset class has its own set of protocols to combat various forms of abuse. In the foreign exchange sector, regulation is managed by authorities across multiple jurisdictions, although there is ultimately a lack of binding international order. Who are the leading regulators in the industry? Regulatory bodies such as the UK’s Financial Conduct Authority (FCA).
The CASP license will allow Sygnum to expand its services across the entire EU once Liechtenstein adopts the regulations (MiCA), which is scheduled for the first quarter of 2025. Sygnum is among a growing number of companies, including Coinbase and Circle, that are preparing to expand in Europe with the implementation of MiCA.
MiCA is a regulatory framework that particularly applies to the cryptocurrency industry. It allows companies licensed in one country to operate in all 27 EU member states as well as in European Economic Area countries like Liechtenstein. Switzerland, where Sygnum is headquartered, is not part of this group