Standard Chartered launches Luxembourg entity for EU cryptocurrency custody

Standard Chartered has announced the launch of a new entity in Luxembourg to serve as a regulatory entry point for providing digital and crypto asset custody services to European Union (EU) clients.

The multinational bank’s initial crypto services in the region will focus exclusively on Bitcoin (BTC) and Ethereum (ETH), with plans to expand to additional assets later in 2025.

Presentation of Luxembourg

According to the official press release, the Luxembourg entity takes advantage of the country’s balanced regulatory and financial environment to meet the growing demand of customers in the EU. Meanwhile, Laurent Marochini has been appointed CEO of the new entity. Interestingly, Marochini was the former head of innovation at Société Générale.

Commenting on the new entity, Margaret Harwood-Jones, global head of finance and securities services, at Standard Chartered, said:

“We are very excited to be able to offer our digital asset custody services in the EU region, enabling us to support our clients with a product that is changing the landscape of traditional finance, while providing the level of security that comes with being a properly regulated entity. We are incredibly proud to pave the way for our institutional clients to access the digital asset ecosystem.”

The Luxembourg expansion follows Standard Chartered’s decision to launch cryptocurrency custody services in the United Arab Emirates (UAE). The bank revealed that its digital asset custody offerings would initially focus on Bitcoin (BTC) and Ethereum (ETH), in partnership with Brevan Howard Digital, the crypto arm of hedge fund Brevan Howard.

The latest development follows the implementation of the Markets in Crypto Assets (MiCA) regulation and is part of the banking giant’s global strategy to expand its digital asset offering.

MiCA Exchange Rules

According to the MiCA regulation, crypto exchanges classified as crypto-asset service providers (CASPs) must adhere to a strict framework to operate within the EU. These requirements include obtaining authorization from national regulatory authorities, meeting financial stability benchmarks, as well as operational transparency.

Exchanges must also implement strong consumer protection measures, such as clear terms of service, fee disclosure, and robust security systems to safeguard user funds and data. In addition, they must maintain transparency by reporting trading volumes, disclosing conflicts of interest and keeping detailed records of transactions.

In addition, MiCA’s Anti-Money Laundering (AML) provisions require exchanges to enforce Know Your Customer (KYC) processes, monitor transactions for suspicious activity and retain data to support investigations. Complying with these standards often requires advanced compliance technologies and significant resource investments.

Smaller exchanges, in particular, face challenges in meeting financial stability requirements and implementing sophisticated compliance infrastructure.

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