Danish Regulators Order $11 Billion Investment Bank to Dispose of Digital Asset Holdings.
In a recent announcement by The Danish Financial Supervisory Authority, it has been revealed that Saxo Bank, a prominent investment bank, has been directed by Danish authorities to divest its crypto assets. The regulator has deemed the bank’s trading activities in digital assets as unlawful and has instructed them to comply with the declaration that local banks are prohibited from holding crypto assets as a hedge against other trading activities.
According to the press release, Saxo Bank had engaged in trading crypto assets for its own account with the intention of mitigating risks associated with the offering of other financial products. However, the regulator emphasizes that this activity is not permitted for Danish financial institutions. Consequently, Saxo Bank has been ordered to dispose of its own holdings of crypto assets.
Notably, the bank had also allowed its customers to trade in crypto assets, a practice that the regulator deems to be in violation of Danish law. The Danish Financial Supervisory Authority argues that unregulated trading in crypto assets can undermine trust in the financial system and considers legitimizing such trading as unfounded.
Furthermore, the regulator asserts that engaging in crypto asset trading does not align with the concept of ancillary bank business for reasons related to financial stability, as stated in section 24 of the Financial Business Act.
The press release does not specify a deadline for Saxo Bank to complete the divestment of its cryptocurrency holdings.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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