Standard Chartered Expands Crypto Services in EU
Standard Chartered Bank has announced an exciting expansion of its cryptocurrency services into the European Union (EU). This move marks a significant step for the London-based bank, which previously launched its crypto-related services in Luxembourg. With the EU’s new regulatory framework, known as the Markets in Crypto-Assets Regulation (MiCA), now in effect, Standard Chartered is poised to tap into the growing demand for digital asset services across Europe. The bank’s entry into the EU market through Luxembourg sets the stage for potential future expansions into other EU countries.
New Services in Luxembourg
Standard Chartered will now offer crypto and digital asset custody services to its customers in Luxembourg. This development is noteworthy as Luxembourg is recognized for its robust regulatory and financial ecosystem. The bank’s decision to establish its services in this small yet influential nation reflects its strategic approach to entering the EU market. According to Worldometer, Luxembourg has a population of over 676,000, and Statista estimates that the number of crypto holders in the country could exceed 36,000 by 2025. This growing interest in cryptocurrencies presents a lucrative opportunity for Standard Chartered.
Margaret Harwood-Jones, the global head of financing and securities services at Standard Chartered, expressed enthusiasm about the new offerings. She stated, “We are really excited to be able to offer our digital asset custody services to the EU region, enabling us to support our clients with a product that is changing the landscape of traditional finance.” This sentiment underscores the bank’s commitment to providing secure and regulated services in the evolving financial landscape.
Laurent Marochini has been appointed as the CEO of Standard Chartered’s Luxembourg entity. Marochini brings valuable experience from his previous role as the head of innovation at Société Générale, a major French bank. His leadership will be crucial as the bank navigates the complexities of the crypto market in Europe.
Standard Chartered’s Crypto Journey
Standard Chartered’s foray into the cryptocurrency sector is not new. In recent years, the bank has engaged in various Web3-centric projects, aligning itself with the growing trend of digital assets. In 2022, the Monetary Authority of Singapore (MAS) collaborated with Standard Chartered to pilot a project aimed at exploring digital tokens that could streamline trade finance processes. This initiative highlighted the bank’s proactive approach to integrating digital assets into traditional financial systems.
Last September, Standard Chartered launched a digital asset custody service in the United Arab Emirates (UAE). Bill Winters, the Group Chief Executive of Standard Chartered, emphasized the bank’s belief that digital assets, including cryptocurrencies, will fundamentally transform the financial landscape. This vision aligns with the bank’s current expansion into the EU, where regulatory clarity is becoming increasingly important for crypto firms.
Regulatory Landscape in the EU
The EU’s regulatory framework for cryptocurrencies, known as the Markets in Crypto-Assets Regulation (MiCA), was finalized in 2022. This comprehensive set of guidelines provides virtual asset service providers (VASPs) with a two-year period to align their operations with the new rules. MiCA aims to ensure that crypto-related practices are safe for investors, covering various aspects such as licensing requirements and best business practices. This regulatory clarity has encouraged many crypto firms to establish a presence in the EU.
As a result, several companies are making their way into the European market. For instance, earlier this month, Hong Kong-based HashKey crypto exchange obtained a license in Ireland, marking its entry into the EU. Similarly, US-based PayPal chose Luxembourg as the launchpad for its crypto services in the EU in 2022. These developments indicate a growing trend of traditional financial institutions and crypto firms seeking to capitalize on the opportunities presented by the EU’s regulatory environment.
Observer Voice is the one stop site for National, International news, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn