Standard Chartered Taps Into EU Crypto Demand With New Luxembourg Hub

Key Takeaways

• Standard Chartered has secured a crypto custody license in Luxembourg.
• The Luxembourg office will serve as Standard Chartered’s entry point into the EU.
• As traditional financial giants embrace regulation, crypto firms face increasing challenges with compliance costs and stringent requirements.

Standard Chartered has secured  a crypto custody license in Luxembourg.

The license will allow the banking titan to offer regulated crypto and digital asset services across the European Union, leveraging Luxembourg as its strategic gateway.

Standard Chartered’s EU Expansion

The move comes shortly after Standard Chartered’s expansion into another crypto-friendly region, the United Arab Emirates, where it established an office in late 2024.

The Luxembourg office positions Standard Chartered to capitalize on the EU’s newly implemented Markets in Crypto-Assets (MiCA) regulations, which provide a comprehensive framework for crypto operations.

Margaret Harwood-Jones, Global Head of Financing & Securities Services at Standard Chartered, emphasized the bank’s commitment to delivering secure digital asset custody within a regulated framework.

“We are really excited to be able to offer our digital asset custody services to the EU region, enabling us to support our clients with a product that is changing the landscape of traditional finance whilst also providing the level of security that comes with being an appropriately regulated entity,” she said.

Luxembourg’s stable financial system and balanced regulatory environment made it an attractive choice for Standard Chartered’s crypto expansion.

The country’s approach aligns with the stringent requirements of MiCA, which came into full effect in December 2024, offering a solid foundation for crypto firms to operate across the EU.

MiCA’s Impact on the Crypto Landscape

The MiCA regulations, introduced in phases starting in June 2023, represent the EU’s first comprehensive attempt to regulate the crypto market.

While the framework aims to foster innovation and stability, it also imposes a lot of compliance burdens on crypto firms.

Under MiCA, companies must acquire a Crypto Asset Service Provider (CASP) license from an EU member state, enabling them to operate bloc-wide.

However, the intricate compliance and licensing requirements have prompted some major players, like Binance, to reconsider their presence in the EU, especially as the United States expects to ease restrictions following Donald Trump’s inauguration.