Cake DeFi secures license to operate as a regulated platform in Europe
It was just a few days ago that Singapore-based Decentralized Finance (DeFi) platform Cake DeFi celebrated its 3rd Anniversary with over $317 million in payout to its customers. Despite the recent downturn in the crypto market, the fintech startup also posted a record 90% quarterly growth.
As part of the major milestone, the fintech startup also announced it now has over $1 billion of customer assets on its platform, as of the end first quarter of 2022, further highlighting the growing users’ interest and trust in the company.
While we’re still digesting the news, Cake came out with another big announcement dedicated to obtaining its European license as part of its vision to make decentralized finance more accessible to the masses.
Today, Cake DeFi announced it has received a cryptocurrency license from the Registrar of Legal Entities of Lithuania to operate as a regulated crypto platform, taking the same path as Binance and others in Europe.
With the new license, Cake DeFi is now authorized to conduct services for exchanging cryptocurrency and providing and administering cryptocurrency custodial wallets in Lithuania. The Lithuania license will also facilitate Cake’s registration and authorization in other European countries. And it will convert into an EU-wide cryptocurrency authorization when the EU Markets in Crypto-assets (MiCA) Regulations become effective in 2024.
This will facilitate Cake’s cryptocurrency registration and authorization in other European Economic Area (EEA) member states and for future conversion into an EU-wide cryptocurrency authorization when the EU Markets in Crypto-assets (MiCA) Regulations become effective. Set to go into effect in 2024, the MiCA framework will grant passporting rights for crypto licenses that fulfill the terms of the framework.
Offering transparent and secure ways to interact with its platform is a core pillar of Cake’s corporate philosophy. As a licensed platform, it will be able to give customers extra peace of mind by providing a regulated environment. Cake DeFi is following the footsteps of other major cryptocurrency companies such as Binance which set up entities in Lithuania and were granted licenses in the country.
“The license from Lithuania is a milestone in our ongoing journey to become fully licensed and regulated in our key markets around the world”, Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi, said in a statement. “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.”
In its home country of Singapore, Cake holds an exemption under the Payment Services (Exemption for Specified Period) Regulations 2019 granted by the Monetary Authority of Singapore (“MAS”) which allows it to continue operating in and from Singapore while the MAS processes its license application to conduct digital payment token services.
Since its launch in 2019, Cake DeFi has been committed to unlocking new economic value, enhancing financial inclusion, and enabling more seamless and efficient financial services. It has paid out a staggering $317 million in rewards to its customers as of Q1, 2022.
To date, 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.
Founded in 2019 by Julian Hosp and U-Zyn Chua, Cake DeFi is a fintech platform for growing cryptocurrency assets. Through its partnership with an internationally compliant and advanced fiat-to-crypto gateway solutions provider, Cake also provides support for swapping 13 major currencies into crypto.
The fintech startup is dedicated to providing access to decentralized financial services and applications by enabling users to generate returns from their crypto and digital assets. It is operated and registered in Singapore and is subject to applicable laws and regulations in Singapore.
By enabling and empowering its users to harness the potential of DeFi, Cake DeFi aims to educate and inform people around the world on crypto and DeFi in a simple, easy-to-understand, and hassle-free manner.