Denmark: FSA orders Saxo Bank to stop crypto-trading

The FSA from Denmark asked Saxo Bank to get rid of its assets at crypto. The banks are currently prohibited from trader from digital assets.

In a statement issued on Wednesday, the Danish regulator Financial Supervisory Authority has announced that the crypto-asset trading business of Saxo Bank for its own account was “outside the legal field of activity financial institutions”.

On this basis, Saxo Bank must divest its own crypto-assets,” wrote the Danish regulator.

The bank founded in 1992 in Copenhagen, which also offers cryptocurrency investment services to its customers, does in fact own digital assets held as a hedge to offset the market risk associated with its crypto products.

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“The MiCA regulation will only come into force in full from December 30, 2024. […] The zone therefore remains unregulated for the time being”, said the FSA.

For its part, Saxo Bank said it was aware of the decision and would be looking into how to “deal with it”.

Because Saxo has a very limited holding in crypto-assets, the decision will have a very slight impact on our business, and our customers will not see any significant changes,” a spokesperson for the Danish investment bank told the press.

Saxo Bank is now under increased scrutiny, having recently been designated a systemically important financial institution (SIFI) by the local regulator.

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