A notable development in the Scandinavian banking sector has emerged, with a Danish challenger bank achieving a significant milestone by obtaining a Crypto-Asset Service Provider (CASP) license under the European Union’s Markets in Crypto-Assets (MiCA) regulation. This achievement makes it the first financial institution in the region to receive such a license, which encompasses its in-app crypto trading platform, Lunar Block, launched in 2022.
The MiCA license replaces the bank’s previous registration with the Danish financial regulator, Finanstilsynet, and broadens its capability to provide cryptocurrency services throughout the European Union without needing additional approvals from individual countries. This is a pivotal change in the landscape for financial institutions operating in Europe, particularly those engaging in cryptocurrency services.
Lunar Block functions as an integrated platform within the bank’s main application, allowing customers in Denmark, Sweden, and Norway to trade various cryptocurrencies. The platform is seamlessly blended with the bank’s overall banking infrastructure, which includes traditional deposit accounts, payment cards, and business banking services.
One of the key remarks from the leadership emphasizes the importance of regulation in developing reliable financial services. As a challenger bank, there is a strong belief in harnessing innovative technologies and crypto assets to enhance the digital asset landscape.
Interest in the MiCA framework is not unique to this bank; other challenger banks across Europe are pursuing similar licenses. Recently, banks such as Sygnum in Zurich and Robinhood have begun expanding their services in alignment with this regulatory framework. The largest neobank, Revolut, is currently in the process of its application for compliance.
This Scandinavian bank has also recently achieved a user milestone, boasting one million users by March 2025 and processing around 121 million transactions per year, establishing itself as a significant player in the Nordic digital banking scene. With a banking license acquired in 2019, the bank employs approximately 400 individuals across the Scandinavian region.
The design of the crypto trading platform emphasizes user experience with transparency in fee structures and built-in trading controls. Users can engage in trading with minimum transaction sizes starting at 10 kroner and benefit from a pricing model based on trade volume rather than the conventional subscription tiers.
One of the primary advantages of obtaining the MiCA license is the ability to “passport” services across all EU member states. This means the bank can offer the Lunar Block platform to users in other European markets such as Germany, France, and the Netherlands without undergoing the licensing process again.
However, specific details about the bank’s plans for expansion into these new markets have not yet been disclosed. Additionally, the bank has not provided information regarding the percentage of its user base actively participating in crypto trading on the Lunar Block platform or the revenue generated from this service.
Overall, this significant regulatory achievement reflects a growing trend among financial institutions to embrace new technologies and adapt to the evolving demands of the market, particularly in the cryptocurrency space. As the landscape continues to develop, the impact of such innovations and regulations on user experience and trust in digital financial services will be closely watched.