Cake DeFi, a Singapore-based DeFi platform, has obtained a cryptocurrency license from the Registrar of Legal Entities of Lithuania. The approval allows the company to provide crypto trading services in Lithuania and other European countries
The new authorization covers many business areas, including crypto-asset trading, custody service, digital asset wallet and portfolio management for clients under the supervision of regulatory bodies in Lithuania.
Obtaining this Lithuanian crypto license is an important step for Cake DeFi and facilitates its registration in other European countries, expanding its service reach to reach more users around the world.
The move also comes ahead of an EU-wide regulatory framework that will grant passporting rights to crypto firms working across the continent. Due to enter into force in 2024, the proposal proposes a tailor-made legislative regime for crypto-asset markets (known as “MiCAs”) and relevant service providers not covered elsewhere in the EU financial services regime.
Among other advantages, Cake DeFi will be able to establish relationships with traditional financial institutions like banks, which allows its customers to convert their cryptocurrency into fiat currency or vice versa on the platform.
Lithuania is one of the few European Union member states to offer transparent and cost-effective virtual currency licensing, with clear and transparent regulations in place since 2020.
Commenting on the news, Dr. Julian Hosp, co-founder and CEO of Cake DeFi, said in a statement: “Licensing Lithuania is an important step in our ongoing journey to become fully licensed and regulated in our key markets. worldwide. I am more than proud of our team’s hard work to meet the strict criteria of financial regulators in Lithuania and to protect our users with strong anti-money laundering policies.
Despite continued falls in cryptocurrency prices, Cake DeFi has amassed over $1 billion in total client assets and nearly one million registered users. The platform opens up a barrage of opportunities for investors to earn stable passive income through staking, lending, and liquidity mining.
The Cake DeFi staking program allows users to earn 31.5% APY on their idle digital assets. Those who deposit in loan lots receive returns at the rate of 6.5% APY within four weeks. Additionally, liquidity mining depositors can earn up to 75% interest in one year.
Last year, Cake DeFi paid out $230 million in customer rewards and in Q1 2022 it paid out over $317 million. The platform recently launched a venture arm with $100 million to invest in startups across web3, metaverse, NFT space, gaming, esports, and fintech.
In addition to the Lithuanian crypto license, Cake DeFi holds an exemption under Singapore’s MAS rules while actively working to acquire a full-scale license this year.
“Cake DeFi has achieved these milestones by creating a single, safe and secure platform for consumers to easily access DeFi services such as staking, lending, borrowing, and liquidity mining. It plans to go public in the near future to accelerate growth and R&D,” the company added.