Januar, a Danish cryptocurrency financial services provider, has recently received a Payment Institution License from the country’s Financial Supervisory Authority (DFSA). This new license will allow the firm to provide its services to companies in the European Economic Area. Januar offers European businesses specialized International Bank Account Numbers (IBAN) which are linked to compliant banking services. This provides crypto businesses the opportunity to conduct multiple banking operations such as payment and settlement in a lawful manner.

The grant of Januar’s license marks a significant move towards a more regulated crypto-finance system. In 2021, the company raised 6 million Euros (roughly $6.5 million) in funding from several investment firms, making it the most successful crypto-finance startup in the country. This is also seen as an important development in light of the declining crypto-friendly presence in the banking sector. Recently, Silvergate Bank and Signature Bank were forced to close down due to strict regulations.

At the same time, some European banks have been making moves towards providing more crypto services. VP Bank of Liechtenstein, for example, increased its scope of custody and tokenization services in April. Another institution, a subsidiary of Boerse Stuttgart Digital, was granted a license for custody services in the same month. German financial firm DWSbank established a new platform for 1,200 banks in the country to provide trading of Bitcoin.

Though these new developments in the crypto-finance environment are making headway, there is still a long way to go. Uncertainties surrounding the cautious financial landscape remain and only time will tell what new regulations will come into effect in the near future. Nonetheless, improvements like Januar's Payment Institution License offer a glimpse of a better, more transparent and fully regulated crypto-financial system.



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