Standard Chartered Bank Expands to EU With New Crypto Entity

Standard Chartered Bank launched cryptocurrency services in Europe through its newly established Luxembourg entity.

The move follows the bank’s successful acquisition of a digital asset license under the European Union’s Markets in Crypto-Assets (MiCA) framework.

Announced on January 9, the initiative positions Luxembourg as the bank’s regulatory gateway for offering cryptocurrency custody and digital asset services across the EU. The decision aligns with the bank’s broader strategy to tap into the growing demand for crypto services among institutional investors.

The launch comes on the heels of similar efforts by Standard Chartered Bank in the United Arab Emirates, highlighting the bank’s expanding footprint in the digital asset sector. The Luxembourg venture aims to leverage the country’s favourable regulatory and financial environment, catering to a rising interest in digital assets within the EU.

The MiCA framework, which recently came into effect, provides a unified regulatory structure for crypto assets and service providers across all 27 EU member states. It replaces fragmented national regulations with a single licensing standard designed to protect investors and prevent market abuses such as money laundering.

While some critics view MiCA as overly strict, others praise it for offering regulatory clarity, something notably absent in countries like the United States.

Industry experts suggest that the regulation could lead to an increase in Euro-denominated stablecoins, which currently lag behind their USD-based counterparts like USDT and USDC. JP Morgan recently noted that despite higher compliance costs, the framework may encourage the growth of Euro-focused digital currencies.