Denmark’s Financial Supervisory Authority (FSA) has rejected the applications for license as a crypto-asset service provider of BigeDirect ApS and Fuse Loyalty ApS.

The regulator registered BigeDirect ApS, CVR no. 43762125, as a provider of services related to virtual assets (VASP) on February 27, 2023. On December 29, 2024, BigeDirect applied to the Danish Financial Supervisory Authority for a license as a crypto-asset service provider. BigeDirect was thus covered by a transitional arrangement, according to which the company could continue to provide crypto-asset services for 18 months after December 30, 2024, unless the company’s application for license as a crypto-asset service provider was rejected during this period.

When assessing BigeDirect’s application, the Danish FSA placed emphasis on the company’s lack of presence in Denmark. The regulator determined that BigeDirect did not have a sufficient presence in Denmark, as the company only had limited management functions in Denmark, which is why the Danish FSA was not confident that decision-making authority was exercised from Denmark, or that BigeDirect actually wanted to operate the company from Denmark.

The Danish FSA placed particular emphasis on the fact that BigeDirect applied for a permit under a transitional arrangement, which requires that the company was already offering its crypto-asset services at the time of application and was thus established in this country.

The Danish FSA is not confident that the Danish FSA can effectively supervise BigeDirect due to the lack of actual ties to Denmark.

Regarding Fuse Loyalty ApS, the Danish FSA registered the firm as a provider of services related to virtual assets (VASP) on March 14, 2024. On December 23, 2024, Fuse Loyalty applied to the Danish Financial Supervisory Authority for a license as a crypto asset service provider. Fuse Loyalty was thus covered by a transitional arrangement, according to which the company could continue to offer crypto asset services for 18 months after December 30, 2024, unless the company’s application for license as a crypto asset service provider was rejected during this period.

In assessing Fuse Loyalty’s application, the Danish Financial Supervisory Authority has placed emphasis on the company’s lack of presence in Denmark. The Danish FSA determined that Fuse Loyalty has not documented sufficient presence in Denmark, as the majority of the company’s management resides outside Denmark, which is why the Danish FSA is not confident that the decision-making authority is in Denmark.

A significant part of Fuse Loyalty’s activities are outsourced to other group entities and third-party companies outside Denmark and the EU. The Danish FSA finds it not documented that sufficient competencies and initiatives have been ensured in the Danish company to assume responsibility and control over the outsourced activities. This gives rise to doubt as to whether Fuse Loyalty has sufficient control over the actual business in Denmark, and whether the company has real operations and establishment in Denmark.

The regulator determined that Fuse Loyalty is not sufficiently independent frpm the rest of the group. This is due to the company’s close connection to other group entities, to which a significant part of its activities is outsourced, combined with the same personnel in the management of the Danish company and the group-affiliated companies.

The Danish FSA is therefore not confident that the Danish FSA can effectively supervise Fuse Loyalty due to the lack of presence.

The Danish FSA has therefore rejected Fuse Loyalty’s application. This means that Fuse Loyalty must cease its activities from the date of the decision.