1 year ago
Financial regulators successful Denmark are coming aft cryptocurrency work providers, declaring that section banks are not allowed to clasp cryptocurrency to hedge against trading risks.
On July 4, the Danish Financial Supervisory Authority (DFSA) officially ordered the section concern slope Saxo slope to dispose of its ain holdings successful crypto.
The regulator said that Saxo Bank’s crypto enactment “lies extracurricular of the ineligible concern country of fiscal institutions,” citing conception 24 of the Denmark’s Financial Business Act.
According to the DFSA, Saxo Bank offers its customers the accidental to commercialized a fig of cryptocurrency products done its platform. The steadfast besides offers respective crypto-linked exchange-traded funds and exchange-traded notes, the regulator noted, adding that “it is imaginable to speculate connected crypto assets.”
Additionally, Saxo Bank has its ain portfolio of cryptocurrency assets, which are held arsenic a hedge to offset the marketplace hazard associated with the bank’s crypto products, the DFSA wrote.
Citing Annex 1 of the Financial Business Act, the authorization said that trading successful crypto-assets does not look to beryllium covered by the ineligible concern country of fiscal institutions successful Denmark. The DFSA stated:
“Based connected the above, Saxo Bank's trading successful crypto assets for its ain relationship is recovered to beryllium extracurricular the ineligible concern country of financial institutions. On this basis, Saxo Bank is ordered to dispose of its ain holdings of crypto assets.”In the announcement, the DFSA besides mentioned Europe's Markets successful Crypto Assets regularisation known arsenic MiCA. The regulator noted that MiCA regulations volition lone instrumentality effect successful its entirety starting from December 2024. “The country frankincense remains unregulated for the clip being,” the regulator added.
The bid from the FSA doesn’t marque Saxo Bank halt its crypto offering, Saxo planetary communications caput Lasse Lilholt told Cointelegraph.
“We people instrumentality the determination of the Financial Supervisory Authority into relationship and volition work it thoroughly to see however we different respond to it,” the typical noted. As a Saxo Bank customer, 1 does not ain the underlying cryptocurrency but alternatively buys a fiscal merchandise that follows the terms of the cryptocurrency.
Related: BlackRock spot Bitcoin ETF filing names Coinbase arsenic ‘surveillance-sharing’ partner
The spokesperson besides noted Saxo Bank holds a “very constricted portfolio of cryptocurrencies,” solely to hedge a marginal proportionality of hazard associated with the facilitation of crypto assets. The typical added:
“The immense bulk of this vulnerability is mitigated done exchange-traded and cleared products. Therefore, the FSA's determination volition person a precise constricted interaction connected our business, and our customers volition not acquisition immoderate important changes.”The DFSA didn’t instantly respond to Cointelegraph’s petition to comment.
It appears that fiscal authorities successful Denmark person been somewhat uncertain astir section cryptocurrency regulations. According to immoderate ineligible sources, cryptocurrencies similar Bitcoin (BTC) bash not autumn nether immoderate class of fiscal services successful Denmark and arsenic specified are not covered by the DFSA’s jurisdiction.
Despite uncertainty, the DFSA authorized the Danish crypto-related startup Januar to behaviour concern successful 30 European Economic Area markets successful April 2023. Previously, The Supreme Court of Denmark made 2 judgments connected whether the merchantability of Bitcoin nether definite circumstances qualifies arsenic a taxable lawsuit successful March.
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