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The Switzerland-based financial institution that focuses on cryptocurrencies \u2013 SEBA Bank \u2013 has reportedly secured an approval-in-principle from Hong Kong\u2019s securities regulator.\u00a0<\/span><\/p>\n The company now needs to comply with additional conditions for final approval before being eligible to provide digital asset services to local consumers.\u00a0<\/span><\/p>\n Based on a Bloomberg\u00a0<\/span>coverage<\/span><\/a>, the Hong Kong Securities and Futures Commission intends to grant the Swiss organization an authorization to engage in securities dealing, such as providing crypto-related structured products and managing digital assets, once it meets necessary regulatory requirements.\u00a0<\/span><\/p>\n SEBA Bank offers both traditional finance services and such involving cryptocurrencies. It can act as a custodian, while clients are also able to stake Ethereum (ETH), Polkadot (DOT), and Tezos (XTZ).\u00a0<\/span><\/p>\n Amy Yu \u2013 Asia Pacific Chief Executive Officer at the company \u2013 said SEBA Bank has seen an increasing demand for derivatives from cryptocurrency firms seeking to hedge their positions.\u00a0<\/span><\/p>\n She added that the interest in structured products is also high, claiming that the final approval from Hong Kong\u2019s regulators should come by the end of 2023.\u00a0<\/span><\/p>\n The exec explained that SEBA Bank will aim to aid local crypto firms that lack brokerage services, suggesting those are \u201cgenerally not as connected with traditional financial markets providers.\u201d\u00a0<\/span><\/p>\n As CryptoPotato\u00a0<\/em><\/span>reported<\/span><\/a>\u00a0earlier in April, the authorities of China\u2019s special administrative region planned to host a meeting between bankers and domestic digital asset businesses to establish closer ties between the two sectors. Prior to that, the Hong Kong subsidiaries of the Bank of China, the Bank of Communications, and the Shanghai Pudong Development Bank\u00a0<\/span>started<\/span><\/a>\u00a0offering their services to local crypto firms.<\/span><\/p>\n Yu said the organization will focus on high-net-worth individuals and family offices. SEBA Bank\u2019s Asian ambitions don\u2019t end with Hong Kong, with Singapore being potentially the next destination, she concluded:<\/span><\/p>\n \u201cWe did concentrate on Hong Kong to start, it is the first jurisdiction in the region. But we are still exploring Singapore.\u201d<\/span><\/p>\n<\/blockquote>\n Hong Kong\u2019s friendly approach to the cryptocurrency industry has become a reason for multiple digital asset firms to explore the region.\u00a0<\/span><\/p>\n Jeremy Allaire \u2013 co-founder and CEO of the stablecoin-issuer Circle \u2013\u00a0<\/span>said<\/span><\/a>\u00a0in June that his organization has been closely following the regulatory developments in the Asian megalopolis. He also noted Hong Kong\u2019s efforts to emerge as a \u201cvery significant center for digital markets and for stablecoins.\u201d<\/span><\/p>\n Allaire\u00a0<\/span>argued<\/span><\/a>\u00a0earlier this year that the regulatory uncertainty in the US could push investors outside the country. He claimed that the local government should act fast, highlighting the progress in Hong Kong, Singapore, and the European Union.<\/span><\/p>\n Leading cryptocurrency exchanges have also targeted China\u2019s special administrative region. OKX\u00a0<\/span>applied<\/span><\/a>\u00a0for a virtual asset service providers (VASPs) license in March, while Huobi started offering crypto spot trading and custody services at the beginning of the summer.<\/span><\/p>\nOne Step Away From Offering Crypto Services<\/span><\/h2>\n
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Paying Special Attention to Hong Kong\u00a0<\/span><\/h2>\n
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