Digital Bank Sygnum Expands to Europe With New Liechtenstein Licence

Swiss and Singapore-based digital asset bank Sygnum said it has expanded its operations to Europe by securing a crypto license in Liechtenstein.

In an announcement Monday, Sygnum said it has registered its local subsidiary with the Liechtenstein Financial Market Authority (FMA), allowing the bank to offer regulated services such as brokerage, custody, and B2B banking to the Liechtenstein market.

In July, Sygnum reported a profitable first half of 2024, driven by strong business performance. The firm said it saw a 500% increase in crypto derivatives trading and a two-fold increase in crypto spot trading volumes, compared to the same period in 2023.

During its results, the bank said it is expanding further into the European market in Q1 2025, in compliance with the upcoming Markets in Crypto-Assets Regulation (MiCA). The landmark framework aims to make the crypto industry in the Eurozone a transparent and secure environment for investors.

The bank said in Q1 2025, Sygnum will significantly expand its regulated footprint via a new office and licenses in the world’s biggest single market, the 30 countries comprising the European Union (EU) and European Economic Area (EEA).

The crypto license in Liechtenstein will allow Sygnum to capitalize on the country’s regulatory environment and the broader EEA which includes alignment with upcoming EU regulations like the MiCA.

Martin Burgherr, Sygnum’s chief client officer, expressed enthusiasm about the bank’s entry into Liechtenstein, citing the country’s reputation for embracing financial and digital asset innovations.

Burgherr emphasized that this registration paves the way for Sygnum to expand its regulated presence in the EU, which is the world’s largest trading bloc.

Liechtenstein Is a Prominent Hub for Digital Assets

Liechtenstein has become widely known as a hub for blockchain and digital assets since implementing the Token and Trusted Technology Service Provider Act (TVTG) in early 2020. The regulatory framework has positioned Liechtenstein alongside Switzerland as a global leader in the regulation of digital assets.

The bank said it is gearing up for full compliance with the MiCA Regulation which Liechtenstein will adopt into its legal framework by the first quarter of 2025. This will give Sygnum access to all 30 EU and EEA markets, broadening its reach in the European market.

Next Stop: Hong Kong?

Sygnum said it has been expanding globally, with plans to enter the Hong Kong market and further growth in Asia through its Singapore Major Payment Institution Licence. In 2022, the bank also established a presence in Luxembourg, Europe’s largest fund market, and opened services in Abu Dhabi.

In January 2024, Sygnum raised over $40 million in an oversubscribed funding round, bringing its valuation to $900 million.

The bank also reported profitability in the first half of 2024 and made headlines by issuing a $50 million Bitcoin-backed loan to a crypto lending platform, further cementing its leadership in regulated digital asset banking.