As reported by Bloomberg on August 28, Sygnum, a cryptocurrency bank, after obtaining a banking license in Switzerland is in discussions with local regulators to seal a banking license in Singapore.
In Switzerland, Sygnum has recently been issued the license of conditional banking and securities dealer and now it aims to become a fully regulated bank in Singapore so it can provide a full suite of financial services.
Becoming a well-developed crypto bank
Gerald Goh, co-founder, and chief strategy officer of Sygnum, said that once it becomes a well developed Swiss bank this year, then its application for the Singapore license will get initiated.
The financial services it aims to provide in Singapore would include custodial services for Ether and Bitcoin. It will also offer conversions between the two cryptocurrencies and Singapore Dollars, Swiss Francs, U.S. Dollars, and Euros.
Mathias Imbach, Sygnum CEO and other co-founder said, “We have been approached over the past few months by many parties who hold a lot of cryptocurrencies and look for a fully regulated bank. One of their biggest challenges is to find banking specialists to connect them to the real world, to pay their taxes, their employees’ salaries.”
Former special advisor for financial administration at the Monetary Authority of Singapore, Chua Kimg Leng, sits on the company’s board and supervises the internal Anti-Money Laundering Committee of the Sygnum.
The shareholders of the company are all board directors and approximately 85% of employees at the firm.
As the company is waiting for regulatory approval, Sygnum’s CEO said that the company is focusing on carrying out strong due diligence on all new potential customers to lessen money laundering risks.
As per an earlier report on Cointelegraph, Sygnum has collaborated with Deutsche Borse Group, global market infrastructure provider and Swiss state-owned telecoms and ICT firm Swisscom to build out a compliant financial market infrastructure for digital assets.
For cryptocurrency firm Seba Crypto AG, this week Sygnum and the Swiss Financial Market Supervisory Authority (FINMA) also finalized a banking and securities dealer license.
What are your views on Sygnum’s step of becoming a full-fledged bank in Switzerland and then in Singapore? Let us know in the comment section below!