A Danish challenger bank has made history as the first financial institution in Scandinavia to acquire a Crypto-Asset Service Provider (CASP) license under the European Union’s Markets in Crypto-Assets (MiCA) regulation. This milestone allows the bank’s in-app crypto trading platform, launched in 2022, to operate under a broader regulatory framework.
This new licensing arrangement replaces a previous registration held with Denmark’s financial regulator, Finanstilsynet. The MiCA license facilitates the bank’s ability to offer cryptocurrency services throughout the European Union without the need for separate approvals in each individual market.
The trading platform, known as Lunar Block, operates solely within the main banking app. It allows users in Denmark, Sweden, and Norway to engage in buying and selling cryptocurrencies. This service is seamlessly integrated with other banking functions, such as standard deposit accounts, payment cards, and tools for business banking.
The bank’s leadership emphasized the importance of regulation in fostering innovation and ensuring the reliability of new services. There is a belief that crypto assets can significantly influence the evolving digital asset landscape within the banking sector.
Other challenger banks across Europe are pursuing similar licenses to expand their crypto offerings. For instance, Sygnum, based in Zurich, obtained a CASP license in September, while Robinhood is in the process of growing its services in the region under the MiCA framework. The neobank Revolut, the largest in Europe, is still working through its application process.
Lunar has experienced notable growth, reaching 1 million users by March 2025 and processing approximately 121 million transactions annually. This growth positions the bank as one of the more prominent digital banking institutions in the Nordic region. Additionally, it holds a Danish banking license obtained in 2019 and employs around 400 individuals across Denmark, Sweden, and Norway.
The structure of the crypto trading platform was designed with transparency in mind, featuring clear fee structures and controls accessible within the app. Users are able to trade starting from a minimum transaction of 10 kroner, with pricing dependent on the volume of trades rather than subscription tiers.
A significant advantage of obtaining the MiCA license is the passporting feature, which permits authorized firms to operate throughout all EU member states. This allows the bank to potentially expand its crypto platform to larger markets such as Germany, France, and the Netherlands without needing to undergo separate licensing processes in those countries.
However, specific details regarding future expansion plans remain undisclosed. Additionally, there has been no information released about what percentage of its user base actively engages in trading crypto through the platform, nor how much revenue this segment contributes to the bank.
Overall, with the new licensing structure and ongoing growth trajectory, this financial institution is carving out a strong position in the evolving crypto marketplace, setting a precedent for other digital banks in the region.