Cake DeFi acquires license to operate regulated crypto business in Europe

abdelaziz Fathi

Cake DeFi, a Singapore-based DeFi platform, has secured a cryptocurrency licence from the Registrar of Legal Entities of Lithuania. The approval enables the firm to provide crypto trading services in Lithuania and other European countries

The new authorisation covers many business areas including crypto-asset trading, custodian service, digital asset wallet, and portfolio management to customers under the supervision of regulatory agencies in Lithuania.

Obtaining this Lithuanian crypto licence is a significant milestone for Cake DeFi and facilitates its registration in other European countries, expanding its scope of service to reach more users worldwide.

The move also comes in anticipation of an EU-wide regulatory framework that will grant passporting rights for crypto firm working across the continent. Set to go into effect in 2024, the proposal offers a bespoke legislative regime for markets in crypto-assets (dubbed ‘MiCA’) and relevant service providers not covered elsewhere in the EU financial services regime.

Among other benefits, Cake DeFi will be able to establish relationships with traditional financial institutions like banks, which enables its customers to convert their cryptocurrency to fiat money or vice versa on the platform.

Lithuania is one of the few member states of the European Union that offers transparent and cost-effective virtual currency authorization, with clear and transparent regulations in force since 2020.

Commenting on the news, Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi, said in a statement: “The license from Lithuania is a milestone in our ongoing journey to become fully licensed and regulated in our key markets around the world. I’m beyond proud of the hard work our team has put in to meet the stringent criteria of the financial regulatory bodies in Lithuania and to protect our users with strong anti-money laundering policies.”

Despite the ongoing crashes in cryptocurrency prices, Cake DeFi has amassed over $1 billion of total customer assets and close to a million registered users. The platform opens up a barrage of opportunities for investors to earn steady passive income through staking, lending, and liquidity mining.

Cake DeFi’s staking program enables users to earn an APY of 31.5% on their idle digital assets. Those who deposit into lending batches are provided with returns at the rate of 6.5% APY within four weeks. Additionally, liquidity mining depositors can earn up to 75% interest within a year.

Last year Cake DeFi paid out $230 million in rewards to customers and in the first quarter of 2022 it gave out over $317 million. The platform has recently launched a corporate venture arm with $100 million to invest in startups across Web3, the metaverse, the NFT space, gaming, esports, and fintech.

In addition to the Lithuanian crypto licence, Cake DeFi holds an exemption under Singapore’s MAS rules while actively working its way to acquire a full-scale licence this year.

“Cake DeFi achieved these milestones by creating a safe and secure one-stop platform for consumers to easily access DeFi services such as staking, lending, borrowing, and liquidity mining. It is planning to get listed on a public stock exchange in the near future to accelerate growth and R&D,” the company added.

  • Read this next

    Institutional FX

    SEC closer to approve 24X’s application for a pioneering 24/7 trading venue

    “Opening the first-ever exchange offering around-the-clock trading in U.S. equities is unprecedented and would create major new opportunities for broker-dealers and their institutional and retail customers around the world. 24 Exchange is excited at the potential for bringing these opportunities to the global market for U.S. equities.”

    Fintech

    Klarna eyes US IPO as valuation targets $20 billion

    Klarna Bank AB, a Swedish fintech and previously Europe’s most highly valued startup, is advancing with plans for a potential U.S. listing, which could become one of the most significant listings of the year.

    Digital Assets

    Shiba Inu Enhances Privacy & Security with New Encryption

    SHIB, the force behind the Shiba Inu cryptocurrency, today introduced Fully Homomorphic Encryption (FHE) into its platform, ensuring unmatched data protection for its users.

    Digital Assets

    Binance Broadens Its VIP Invitation Program for Traditional Asset Traders

    Step Into the Future of Trading: Binance Invites Traditional Asset Traders to Join Its Exclusive VIP Program

    Digital Assets

    Algotech Presale Revolutionizes DeFi Scene, Surpassing $1 Million Raised in Just Weeks

    Emerging Cryptocurrency trading platform Algotech (ALGT) known to be famous with its cutting-edge features. The TradFi platform features advanced algorithms to provide a competitive edge to traders. 

    Fintech

    Revolut enables direct transfers from Singapore to Bangladesh and Kenya

    British fintech firm Revolut has broadened its array of services with the introduction of the “Mobile Wallets” feature in Singapore, facilitating direct money transfers to Bangladesh and Kenya.

    Digital Assets

    SBF claims “zero loss” to FTX customers, 100-year sentence is “grotesque”

    Sam Bankman-Fried, the former FTX CEO who was found guilty of fraud charges last year, is facing his sentencing next month. But before that day arrives, he’s making a plea for what he considers a fair shake.

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    <