Saxo Bank Ordered to Liquidate Its Portfolio of Crypto Assets by Danish Financial Regulator

According to a July 4, 2023 property merchandise from the Danish Financial Supervisory Authority, Denmark’s Saxo Bank has been instructed to liquidate its holdings of cryptocurrency assets. The fiscal regulator maintains that Saxo Bank’s portfolio of crypto assets falls “outside the ineligible concern country of ​​financial institutions” and is successful usurpation of the country’s Financial Business Act.

Danish Financial Regulator Insists ‘Unregulated Trading successful Crypto-Assets Can Create Distrust successful the Financial System’

The Danish fiscal regulatory authority, tasked with overseeing fiscal markets successful Denmark, has directed Saxo Bank to liquidate its crypto plus portfolio. Saxo Bank, an concern slope established successful 1992, specializes successful online trading and investment. In 2017, Saxo Bank incorporated crypto assets into its services, enabling trading of integer currencies similar BTC, LTC, and ETH.

The slope besides offers customers entree to crypto exchange-traded products (ETPs), allowing investors to summation vulnerability to salient cryptocurrencies. The Danish Financial Supervisory Authority (DFSA) asserts that Saxo Bank, successful summation to offering crypto services, maintains “a portfolio of crypto assets, which are held arsenic a hedge to offset the marketplace hazard associated with the bank’s crypto plus products.”

The DFSA maintains that trading successful crypto assets is not listed successful Annex 1 of the Financial Business Act. Moreover, the enactment is deemed unacceptable arsenic an ancillary slope concern owed to concerns regarding fiscal stability. The regulator believes that “unregulated trading successful crypto-assets tin make distrust successful the fiscal system.”

Hence, the DFSA has present directed Saxo to “dispose of its ain holdings of crypto assets,” citing that holding cryptocurrencies for the bank’s ain relationship exceeds the ineligible boundaries established for Danish fiscal institutions. Nevertheless, the DFSA does not specify a deadline oregon bespeak successful the property merchandise the timeframe for Saxo’s compliance with the caller ruling.

In a statement provided to Coindesk, a Saxo spokesperson expressed that the fiscal instauration volition “naturally instrumentality the determination of the Financial Supervisory Authority into relationship and volition work it thoroughly to see however we different respond to it.”

What interaction bash you deliberation the liquidation of Saxo Bank’s crypto assets volition person connected the broader adoption and regularisation of cryptocurrencies successful Denmark and beyond? Share your thoughts and opinions astir this taxable successful the comments conception below.