A significant development has occurred in the European fintech landscape, as a prominent British financial technology firm has received authorization from the Cyprus Securities and Exchange Commission (CySEC) to offer cryptocurrency services throughout the European Union. This latest achievement follows closely behind the company’s recent approval in Mexico to operate as a licensed bank, enabling it to accept deposits and grant loans.
The newly obtained Markets in Crypto Assets (MiCA) license allows the firm to engage in the sales of digital tokens across all 30 member countries in the European Economic Area (EEA). This regulatory approval comes at a time when European nations are tightening oversight in the cryptocurrency sector to ensure consumer protection and transparency in transactions, especially with the introduction of MiCA, which outlined the mandatory standards for crypto exchanges.
With this license, the firm is now poised to launch an upgraded platform, termed “Crypto 2.0.” This new iteration promises to feature an extensive selection of over 280 different tokens and provides users the capability to stake cryptocurrencies without incurring platform fees. The staking products offered are anticipated to yield returns as high as 22% on an annual basis, although returns are subject to fluctuations depending on user participation in the network.
Additionally, the firm is set to introduce a feature allowing customers to convert stablecoins to U.S. dollars at a one-to-one rate, eliminating potential spread costs and simplifying the transition between digital and traditional currencies.
The regulatory recognition in the EEA coincides with the enforcement of MiCA, which comes into effect this year and mandates that crypto exchanges adhere to strict standards. This implementation has forced many platforms to halt the onboarding of new clients while they navigate the new regulatory landscape. In anticipation of these changes, the firm had already migrated its European crypto users to a Cyprus-based entity compliant with CySEC rules, and paused new registrations earlier this year to mitigate regulatory risks.
Data suggests that by the end of 2025, over 65% of European crypto operators are likely to align with MiCA regulations. Non-compliance could result in significant repercussions, with fines across the industry potentially exceeding €1.2 billion in 2025 alone.
In addition, the firm has successfully extended its regulatory reach beyond Europe, recently securing a banking license in Mexico, where it became the first independent digital bank to complete the full licensing process from the ground up. This achievement paves the way for offering a broad array of financial services and assurances related to customer protection.
Management of the Mexican operations has indicated plans to commence account openings for customers who are currently on a waiting list, which already encompasses nearly 200,000 individuals. Expectations project an active customer base of about 1.5 million within the first year.
On the horizon, the firm is actively pursuing a banking license in Colombia and exploring options for acquiring a bank in Argentina, building on its prior establishment in Brazil in 2023. Recently announced funding of £10 billion over the next five years indicates plans to extend services into over 30 markets, with an ambition to grow its user base from 65 million to 100 million by mid-2027.
However, challenges persist, particularly in the United Kingdom, where the approval process for a full banking license is currently stalled due to concerns regarding risk controls amidst rapid global expansion.
The Cyprus operation is positioned to serve as the central hub for the firm’s cryptocurrency endeavors across the EEA, facilitating operations related to a specialized trading platform and fostering integration with various third-party wallets.