Saxo Bank of Denmark instructed to sell off its crypto holdings as per regulatory directive.
The Danish financial regulator cited the current prohibition on banks engaging in proprietary crypto trading.
Denmark’s systemically important financial institution, Saxo Bank, directed by the country’s financial regulator to divest its own crypto holdings.
Denmark’s Financial Supervisory Authority cites legal restrictions as it orders Saxo Bank to dispose of its own crypto holdings. The regulator clarifies that proprietary trading of crypto assets by Danish financial institutions is currently prohibited, despite Saxo Bank’s claim of risk hedging.
Saxo Bank’s proprietary crypto trading remains unregulated due to the European Union’s forthcoming MiCA regulation, effective from December 30, 2024, according to the Danish Financial Supervisory Authority.
In addition to its proprietary trading, Saxo Bank extends crypto trading services to clients, granting them access to crypto exchange-traded products.
The bank facilitates crypto trading through fiat pairs such as the U.S. dollar, euro, and Japanese yen. However, Saxo Bank’s website states that funding and withdrawal in cryptocurrencies are not permitted.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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