Expanding Horizons: Sygnum’s Next Steps in Singapore
In a move that’s as bold as it is timely, cryptocurrency pioneer Sygnum is currently in talks with local regulators in Singapore. Reports from Bloomberg on August 28 hint that the company is keen on acquiring a banking license in the Lion City, just as it secures its conditional banking and securities dealer license in Switzerland. I mean, who wouldn’t want to be a fully regulated bank in one of the most thriving financial hubs in the world?
The Road to Regulation
Gerald Goh, Sygnum’s co-founder and chief strategy officer, has a plan that’s clearer than my morning coffee: the application for the Singapore banking license will kick off once they establish themselves as a fully-fledged Swiss bank later this year. This strategic timing shows just how serious they are about expanding their foothold in the global crypto market.
Full-Service Crypto Banking
But what does becoming a regulated bank in Singapore mean for Sygnum and, more importantly, for its clients? According to Goh, the services they aim to offer are about as comprehensive as a Swiss Army knife. We’re talking custodial services for Bitcoin (BTC) and Ether (ETH), currency conversions between these digital assets and established fiat currencies like Swiss francs, euros, Singapore dollars, and yes, even the mighty U.S. dollars!
Addressing Unique Challenges
Sygnum’s CEO, Mathias Imbach, revealed that the demand for a fully regulated bank is palpable. Many cryptocurrency holders are struggling to find banking solutions that cater to their specialized needs, like paying taxes or handling salaries. Imbach’s words resonate with anyone who’s ever scrambled to make sense of complex financial regulations and processes. Talk about a headache!
Compliance and Integrity at the Core
With about 60 million Swiss francs (around $61 million) raised, and with backing from prominent institutions, Sygnum is ramping up its compliance efforts. Chua Kimg Leng, who previously worked as a financial supervisor at the Monetary Authority of Singapore, sits on Sygnum’s board to oversee compliance. Because if there’s one thing we’ve learned in finance, it’s that crossing the t’s and dotting the i’s can save a lot of headaches down the road.
Future Partnerships and Projects
As Sygnum awaits the green light from regulators, the company is not sitting idly. Instead, they’re busy building robust due diligence practices to ensure they can effectively prevent money laundering risks. In an exciting development earlier this year, Sygnum teamed up with Deutsche Borse Group and Swisscom to develop a compliant financial market infrastructure for digital assets. Progress in this area could make waves in the crypto community, providing a stable backbone for future growth.
