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Danish crypto startup Januar receives a license to provide IBAN accounts to European crypto firms
Januar, a Danish startup founded in 2021 by former Chainalysis staff, has received a Payment Institution License from the Danish Financial Supervisory Authority (DFSA). This license will allow the company to operate in the 30 European Economic Area markets. Previously, Januar could only serve Danish companies under its limited permission.
The start-up provides cryptocurrency firms with International Bank Account Number (IBAN) business accounts. By linking to IBAN infrastructure, crypto companies gain access to compliant fiat banking services, such as payments and settlement, which may otherwise be difficult to obtain. The licensing of Januar will allow it to provide such services on a larger scale.
According to Januar Simon Ousager, who is the co-CEO, the crypto industry has been innovating at a faster pace than the banking and payment infrastructure, which has been slow in catching up. He believes that recent incidents of crypto-friendly banks closing down are a clear indication of this unfortunate trend in the industry. However, Ousager feels that January's licensing is a significant step in the opposite direction.
Danish startup Januar secures Payment Institution License and helps crypto firms find banking services.
The year following its founding, Januar received €6 million ($6.5 million) in early capital, setting a new record for startup funding in Denmark. With the help of Angular Ventures, Outward VC, byFounders, and a number of angel investors, the investment round was co-led by Element Ventures.
Finding banking services has become more challenging for crypto companies following the closure of crypto-friendly Silvergate Bank on March 8 and the closure of Signature Bank by New York regulators the following week. However, European banks have started extending their crypto offerings.
For example, VP Bank in Liechtenstein expanded its custody and tokenization services in April, and a subsidiary of Boerse Stuttgart Digital received a license to provide custody services in March. In addition, German Dwpbank announced that it would open a new platform to provide Bitcoin trading for around 1,200 banks in the country.