In a significant move in the realm of cryptocurrency, Swiss-based SEBA Bank is edging closer to making its mark in Hong Kong’s crypto landscape. The bank has clinched a conditional nod from Hong Kong’s Securities and Futures Commission (SFC) to extend its crypto services in the region.The August 30th disclosure revealed that SEBA obtained an “approval-in-principle” to dish out virtual asset services in the buzzing financial hub of Hong Kong. But there’s a catch – some conditions remain pending before this coveted license gets stamped.
If the bank manages to tick all boxes, Hong Kong will be in for a versatile crypto service treat. SEBA’s potential offerings could range from securities dealing, especially those structured around cryptocurrencies, to advisory and management of a mix of digital assets and traditional securities.
Backing up a bit, it was on July 22 that the rumblings of SEBA’s expansionist ambitions first echoed. The bank was not only trying to pin down digital asset licenses in Hong Kong but also in Singapore. Their mission was clear: bolster their workforce from a mere seven to a sturdy twenty across both strategic locations.
In related news, Hashkey Exchange, with the distinction of being one of the first licensed crypto exchanges in Hong Kong, made waves by opening its digital doors to retail users. The exciting bit? These users could snap up giants like Bitcoin and Ethereum with good old US dollars.
However, it’s not all rosy in Hong Kong’s crypto corridors. Despite the Hong Kong Monetary Authority (HKMA) nudging leading financial institutions to shake hands with crypto exchanges, there’s an air of caution. In a strategic move in April, ZA Bank, the largest online banking powerhouse in Hong Kong, made its crypto debut, offering transfer and conversion services – effectively weaving a direct thread between fiat currency and digital assets.
Yet, the SFC doesn’t want its citizens diving head-first. They sounded the alarm, urging due diligence as some exchanges might parade around with fake virtual asset service provider (VASP) licenses. This new VASP license, unveiled in June, is a beacon for firms desiring to function within Hong Kong’s regulatory boundaries. However, as of now, the licenses’ prestigious holder count stands at two – Hashkey Exchange and OSL Exchange.
In a stern reminder, the SFC emphasized, “Most VASPs currently accessible by the public are unregulated.” As Hong Kong stands on the brink of a crypto revolution, the terrain ahead seems both exhilarating and fraught with challenges.
