In a significant development for the cryptocurrency and blockchain sector, the Hong Kong arm of SEBA Bank, a Swiss-based institution focusing on digital assets, has been granted a license by the Securities and Futures Commission (SFC) to provide crypto-related services within the region. This announcement comes as the Hong Kong government intensifies its efforts to position itself as a key hub for digital assets in the Asia-Pacific region.
SEBA Bank’s license from the SFC is multifaceted, enabling the institution to engage in trading and distribution of both conventional and virtual asset-related securities. These securities include over-the-counter derivatives and structured products with underlying virtual assets. Moreover, SEBA Bank is also empowered to offer advisory and asset management services for securities held in discretionary accounts, providing a comprehensive suite of financial products and services related to virtual assets.
The expansion of SEBA Bank into Hong Kong was set into motion in November 2022 when it established a wholly-owned subsidiary in the city. This recent approval marks its first regulated presence in the Asia-Pacific region, a significant milestone for the institution’s global expansion strategy.
Amy Yu, CEO for Asia-Pacific at SEBA Hong Kong, expressed enthusiasm about the newly obtained license, emphasizing that Hong Kong’s well-established and clearly defined regulatory framework provides significant potential for their business. She went on to mention that SEBA Bank will immediately commence offering its services to institutional and professional investors, corporate treasuries, funds, family offices, and high-net-worth individuals in Hong Kong.
Hong Kong has been actively striving to attract a greater share of the virtual assets industry since the previous year. On June 1, it introduced a new virtual asset trading platform (VATP) regime, allowing virtual asset providers to serve retail investors after securing licenses from the SFC. So far, only two local exchanges, HashKey and OSL Exchange, are listed as licensed crypto platforms by the SFC, having upgraded their existing licenses in August.
However, it is expected that more approvals will be granted ahead of the June 1, 2024 deadline when a grace period for obtaining a VATP license or exiting the Hong Kong market will come to an end. As of the latest update, five exchanges have submitted their applications to the SFC but are still awaiting approval.
SEBA Bank has not been passive in its efforts to establish a strong presence in Hong Kong. It has entered into a strategic partnership with HashKey, designating the latter as its “preferred digital asset trading and market development partner in Hong Kong” since December 2022. This collaboration not only bolsters SEBA’s business but also contributes to enhancing Hong Kong’s stature as a global financial services hub.
Franz Bergmueller, CEO of SEBA Bank, highlighted the robust legal system in the region as a solid foundation for conducting crypto-related services. He expressed eagerness to begin these services immediately, underscoring the significance of Hong Kong’s latest cryptocurrency regulations.
Prior to receiving the official license, SEBA Bank had already obtained in-principle approval from the SFC for virtual asset trading services in late August. Additionally, the institution operates regulated entities in Switzerland and Abu Dhabi, where it offers a comprehensive range of virtual asset-related solutions, including staking, lending, custody, investment, trading, banking, and deposit services.
With SEBA Bank’s entrance into the Hong Kong market, the city is taking notable steps to position itself as a leader in the ever-evolving digital asset landscape. As it continues to attract global players in the cryptocurrency and blockchain space, Hong Kong aims to solidify its reputation as a pivotal hub for the future of finance.
(Source: Businesswire | Dylan Butts | SCMP | Sandali Handagama | CoinDesk)
