Swissquote secures CySEC licence as crypto business grows
Swissquote Group, Switzerland’s provider of online trading services, has received approval from CySEC to operate as a market-making Cyprus investment firm.
The licence provides yet another regulatory stamp for the online bank’s offering, which includes digital assets and cryptocurrencies, in Cyprus and Europe.
Swissquote’s head of sales, Muamar Behnam, announced the news in a LinkedIn post and said the move comes as part of the group’s broader plans to grow internationally.
Operating under the Cysec umbrella allows the new subsidiary, Swissquote Capital Markets Ltd (CY), to leverage its new regulatory profile to expand its services into the European Markets. Further, the group’s operational capability has been substantially enhanced with the Cypriot approval as the company is now authorised to provide investment and professional trading services, including transferable securities, derivatives, and foreign exchange.
Cyprus has long positioned itself as a jurisdiction that is well-regulated and is ideal for international FX providers that are looking for a stamp of European approval.
The introduction of the new brand comes at a time when some clients are experiencing challenges in finding a reliable broker or are facing increased trading costs in a constrained market. As such, Swissquote’s Cypriot unit will try to develop a coherent image of the company that already combines a diversified offering and high-profile Swiss bank regulation as a top priority.
Swissquote has been looking to delve further into the digital-asset arena with the launch of its own cryptocurrency trading platform. Earlier in October, the company announced that its own crypto exchange, dubbed ‘SQX’, is run and operational. To further sweeten the offering, Switzerland’s largest online bank added stablecoins and staking services to the list of cryptocurrency offerings.
The new service combines Swissquote’s expertise as a provider of online trading services with digital asset security, in a bid to provide a safekeeping service for investment houses looking to gain exposure to the rapidly emerging asset class.
Swissquote’s crypto offering is going up against local players like Dukascopy which has its own cryptocurrency, allows clients to deposit and withdraw funds in digital coins, as well as enabling free internal crypto-transfers between users of mobile banking.
