The Hong Kong division of SEBA Bank, a Swiss bank supportive of crypto, has obtained in-principle approval from the Hong Kong Securities and Futures Commission [SFC]. This approval permits the bank to engage in transactions involving digital assets.
SEBA announced on Aug. 30 that its latest license will enable the bank to deliver crypto offerings, including over-the-counter derivatives, advice on virtual assets, and managing assets for discretionary accounts involving digital assets as well as traditional securities. The Hong Kong branch, however, won’t have the capability to convert between fiat currencies and cryptocurrencies. It can, nevertheless, direct clients to its Zug headquarters, which holds the necessary license for such conversions.
Hong Kong marks the third market where SEBA has pursued a license. This follows its activities in Switzerland and Abu Dhabi. With this preliminary approval, SEBA is now poised to make preparations for operations once it obtains the official license. Amy Yu, the CEO of the Asia Pacific region at SEBA Bank, anticipates that approvals will be granted by the end of 2023. Speaking further about veering into Hong Kong, she said,
“We did concentrate on Hong Kong to start, it is the first jurisdiction in the region. But we are still exploring Singapore.”
Also Read: Hong Kong Launches First Crypto Trading Platform, HashKey
Is Hong Kong the new crypto hub?
SEBA’s latest approval arrives amidst a series of regulated crypto movements taking place in Hong Kong. HashKey, a cryptocurrency exchange that secured regulatory approval as the first in Hong Kong. It should be noted that HashKey and SEBA partnered back in 2022 in order to boost institutional adoption.
Although the area is witnessing growing attention from various companies, SEBA’s involvement is distinct. Yu explained that SEBA’s decision stemmed from the demand voiced by crypto companies. They have been encountering difficulties in managing and accessing their digital asset holdings through traditional channels. Moreover, there was notable interest from private wealth and family offices. She added,
“Crypto firms are generally not as connected with traditional financial markets providers. We are comfortable interacting with these kinds of clients.”
Also Read: Crypto: SEBA Bank Partners HashKey to push Institutional Adoption