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Danish Financial Supervisory Authority (FSA) ordered the investment bank Saxo Bank to get rid of all cryptocurrency reserves. The financial regulator justified its requirement by the fact that operations with cryptoassets are not on the list of permissible activities for banking institutions in Denmark.
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“The use of Saxo Bank’s resources to trade cryptocurrencies is outside the legal scope of financial institutions. On this basis, Saxo Bank is ordered to get rid of its own assets in cryptocurrency,” the FSA notice said.
According to the FSA, Saxo Bank has been actively offering its customers digital asset trading services, as well as the possibility of investing in several cryptocurrency exchange-traded funds and exchange-traded notes. In addition, Saxo Bank formed its own investment portfolio of crypto-assets, which were used to hedge the risk associated with the bank’s cryptocurrency operations.
“Unregulated trading in crypto-assets could cause market participants to distrust the country’s financial system. Therefore, the Danish FSA considers it reasonable to stop the illegal trading of crypto-assets,” the FSA said in a statement.
Earlier, the European Parliament’s Economic and Monetary Affairs Committee (ECON) reported that EU representatives were able to reach consensus on amendments to the regulation on banks’ own capital requirements to create conditions for the circulation of digital assets.<br