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2026-05-08

Fuse Loyalty ApS Refused Application for License as Crypto-Asset Service Provider

The Danish Financial Supervisory Authority (Finanstilsynet) has refused Fuse Loyalty ApS's application for a crypto-asset service provider license, requiring the immediate cessation of all operations effective from the decision date. The refusal is based on the company's insufficient physical presence in Denmark, as most management resides abroad and significant activities are outsourced to non-EU entities, preventing effective regulatory oversight and demonstrating a lack of local control and independence. Consequently, Fuse Loyalty must permanently wind down its business due to its failure to establish genuine operations and adequate decision-making authority within Danish jurisdiction.

Denmark

Finanstilsynet Denmark

Decision 08-05-2026 The Danish Financial Supervisory Authority (Finanstilsynet) made a decision on 30 April 2026 to refuse Fuse Loyalty ApS's application for a license as a crypto-asset service provider. Finanstilsynet registered Fuse Loyalty ApS, CVR no.

45210898, as a provider of services related to virtual assets (VASP) on 14 March 2024.

On 23 December 2024, Fuse Loyalty applied to Finanstilsynet for a license as a crypto-asset service provider [1]. Fuse Loyalty was thereby covered by a transitional arrangement, under which the company could continue to provide crypto-asset services for 18 months after 30 December 2024, unless the company received a refusal of its application for a license as a crypto-asset service provider during this period [2].

In assessing Fuse Loyalty's application, Finanstilsynet placed emphasis on the company's lack of presence in Denmark. Finanstilsynet assesses that Fuse Loyalty has not documented sufficient presence in Denmark, as the majority of the company's management resides outside Denmark, meaning Finanstilsynet is not reassured that decision-making authority is located in Denmark.

A significant portion of Fuse Loyalty's activities are outsourced to other group entities and third-party companies outside Denmark and the EU. Finanstilsynet finds it undemonstrated that sufficient competencies and measures are secured within the Danish company to manage the responsibility and control of the outsourced activities. This raises doubts as to whether Fuse Loyalty has sufficient control over the actual business operations in Denmark, and whether the company has genuine operations and establishment in Denmark.

Finanstilsynet assesses that Fuse Loyalty is not sufficiently independent from the rest of the group. This is due to the company's close ties to other group entities, to which a significant portion of its activities are outsourced, combined with overlapping management between the Danish company and the group-affiliated companies.

Finanstilsynet is therefore not reassured that it can conduct effective supervision of Fuse Loyalty due to the lack of presence. Finanstilsynet has therefore refused Fuse Loyalty's application [3]. This means that Fuse Loyalty must cease its activities from the date of the decision.

The decision was made by Finanstilsynet after submission to Finanstilsynet's board of directors [4].

[1] cf. Article 62 of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA) [2] cf. Section 17, subsection 6, of Act No. 481 of 22 May 2024 [3] cf. Article 63, subsection 10, point (d), of MiCA, cf. Section 332c, subsection 1, of the Financial Business Act [4] cf. Section 345, subsection 12, item 4, of the Financial Business Act

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