The Danish Financial Services Authority is asking Saxo Bank to dump cryptocurrency

The Danish financial watchdog has ordered Saxo Bank to dispose of crypto assets that violate Article 24 of the Financial Business Act. While Asia struggles to secure crypto banking partners.

The watchdog said that cryptocurrency business activities are illegal and not covered by Appendix 1 of the Financial Business Act.

The FSA says Saxo Bank should dump cryptocurrencies regardless of their use

It said crypto remains unregulated until Annex 1 adopts the rules in the EU’s Crypto Markets Assets Bill in December next year. Moreover, the FSA notes that crypto assets can generate mistrust in the financial system, and that banks’ involvement in such activity threatens financial stability.

While the Danish bank has used cryptocurrency to hedge risks from other products it offers, the law does not allow any cryptocurrency-related activity. the bank He should And then get rid of the crypto assets.

Saxo Bank records the second largest turnover rate for a northern fintech company in 2019 | source: Statista

The US Federal Reserve does not allow members to hold most crypto assets. Banks using “dollar tokens” must prove security measures and obtain official approval. Risks cited by the Fed include fraud, legal ambiguity, and volatility. Lawmakers hope the bills will clear up the confusion mired in bureaucracy for months to a year.

This slow progress has led to several attempts by the SEC to build jurisdictional law through strict enforcement action. As a result, many companies, such as JP Morgan and Citigroup, are testing the potential of blockchain technology to speed up asset transfers.

Read more here about the tokens banks use to transfer assets via the blockchain.

As a result, cryptocurrency trading activity is slowly moving to the east, with jurisdictions like Singapore and Hong Kong slowly emerging as the leaders in the next uptrend.

Bank support in Asia is slow but steady

However, banking support remains a sore point for cryptocurrency entry into Asia. Hong Kong executives engage in a delicate dance in an effort to reconcile Western and Eastern ideals.

The Hong Kong Monetary Authority recently asked the regional branches of HSBC and Standard Chartered to reconsider serving crypto firms. Previous brushes with money laundering and allegations of criminal activity at major exchanges have discouraged executives from supporting the industry.

If they are found to have facilitated money laundering while trying to fulfill the CMA’s request, they could face the wrath of the US Department of Justice.

However, banks will not need to handle detailed KYC except for transfers over HK$8,000 (US$1,000). This limit follows the latest money laundering guidelines issued by the Financial Action Task Force.
Furthermore, all virtual asset service providers can only obtain licenses by complying with risk policies that include the cryptocurrency travel rule.

HSBC Bank Asya asked to introduce cryptocurrencies
HSBC’s total assets will reach $3 trillion in 2022 | source: Statista

Nevertheless, regional support remains crucial if Asia is to fill the trade void created by US regulatory opacity.

ZA Bank in Hong Kong allows exchange customers to convert between cryptocurrencies and fiat currencies. Meanwhile, the Hong Kong branch of the Bank of China already has many customers. Swiss Bank SEBA AG is said to be looking to acquire licenses in Singapore and Hong Kong.

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Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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