Sygnum Unit Receives Liechtenstein License as a Crypto Asset Service Provider

As a seasoned researcher with a keen interest in the dynamic world of finance and technology, I find this development particularly intriguing. Having closely followed the evolution of digital assets and their regulatory landscape, it’s exciting to witness Sygnum’s strategic move to expand its operations under MiCA.

According to Sygnum, they have secured a cryptocurrency license from Liechtenstein. This development enables the digital asset banking group headquartered in Zurich and Singapore to expand their operations into the European Union, compliant with the Markets in Crypto-Assets Regulation (MiCA) framework.

In the given country, the local branch of the bank obtained authorization to provide regulated services involving digital assets, such as brokerage, safekeeping, and traditional banking functions.

Sygnum, similar to firms such as Coinbase and Circle, is gearing up to expand its operations in Europe, with the implementation of MiCA serving as a catalyst. MiCA stands for Markets in Crypto-Assets, a tailored regulatory framework designed specifically for the crypto industry. This framework allows companies licensed in one European Union (EU) country to operate throughout all 27 EU member states, plus countries like Liechtenstein that belong to the European Economic Area. Switzerland, however, is not part of either the EU or the EEA.

The Markets in Crypto-Assets (MiCA) regulatory framework for stablecoins went live in June, and additional rules are expected to take effect by December. European Union member states have begun accepting applications for their individual crypto asset service provider (CASP) programs.

Martin Burgherr, Sygnum’s Chief Clients Officer, stated that obtaining CASP registration in Liechtenstein will facilitate a substantial growth of our regulated presence within the European Union (EU), which is the world’s largest trading alliance.