Danish Financial Regulator Denies Crypto License Applications from BigeDirect and Fuse Loyalty

​Denmark's Financial Supervisory Authority (FSA) has rejected applications from BigeDirect ApS and Fuse Loyalty ApS for licenses to operate as crypto-asset service providers.

BigeDirect ApS was registered as a virtual asset service provider (VASP) in February 2023 and applied for a formal license in December 2024, falling under an 18-month transitional arrangement. The FSA's assessment focused on the company's lack of substantial presence in Denmark, citing limited local management functions and insufficient evidence that decision-making authority was exercised from within the country. The regulator concluded it could not effectively supervise the firm.

Similarly, Fuse Loyalty ApS, registered as a VASP in March 2024 and applying for a license in December 2024, was also rejected. The FSA determined the company failed to demonstrate adequate presence, noting that most management resides abroad and a significant portion of its activities are outsourced to entities outside Denmark and the EU. The regulator also raised concerns over the firm's lack of independence from its wider corporate group and insufficient control over outsourced operations.

Consequently, the Danish FSA has rejected both applications. Fuse Loyalty must cease its activities immediately following the decision.