Swiss-based SEBA bank has reportedly obtained conditional approval from Hong Kong’s security regulator to offer crypto services within the region.
Once approved, the bank will be able to participate in various forms of crypto asset services.
SEBA Bank Crypto Plans Make Progress
According to an August 30 report, SEBA has received “approval-in-principle” from Hong Kong’s Securities and Futures Commission to offer virtual asset services in the region.
It reports that certain conditions still need to be fulfilled before granting the license. However, once approved, the bank will have the capability to offer Hong Kong a range of services within the crypto sector:
“It will then be able to engage in securities dealing, including crypto-related structured products, and advise on and manage digital assets and traditional securities.”
To learn more about suitable crypto exchanges, read BeInCrypto’s guide: 9 Best Crypto Exchanges for Day Trading in 2023
On July 22, reports revealed that SEBA was expanding its workforce as part of its efforts to obtain digital asset licenses in both Hong Kong and Singapore. During that period, SEBA aimed to increase its total employee count across both locations from the existing seven to 20.
This comes amid reports that Hashkey Exchange, which is among the first licensed crypto exchanges in Hong Kong, has now started accepting retail users. These users will reportedly have the option to buy Bitcoin and Ethereum using US dollars.
Recent Warning To Investors in Hong Kong
Recently, the Hong Kong Monetary Authority (HKMA) has reportedly been encouraging major financial institutions to establish relationships with crypto exchanges.
In April, ZA Bank, Hong Kong’s largest online bank, entered the crypto space by introducing transfer and conversion services. This enables the bank to have a direct line between digital assets and fiat currency.
The SFC recently warned its citizens to conduct due diligence when dealing with an exchange. It reports that some may be operating under fraudulent virtual asset service provider (VASP) licenses.
Introduced in June, the VASP license enables approved firms to offer virtual asset services within the regulatory framework in Hong Kong. Nevertheless, the SFC cautions that only two crypto exchanges have currently received licenses – Hashkey Exchange and OSL Exchange.
“Most VASPs currently accessible by the public are unregulated,” the SFC declared in a recent statement.
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