Swiss SEBA Bank gets approval to provide crypto-related services in Hong Kong
- SEBA said the licence allows it to deal in and distribute both traditional and virtual assets-related securities
- SEBA will begin offering its services to institutional, professional investors and high-net-worth individuals in Hong Kong with immediate effect
The Hong Kong arm of Swiss cryptocurrency-focused SEBA Bank has received a licence from the Securities and Futures Commission (SFC) to offer crypto-related services in the city as the government continues efforts to become a regional hub for digital assets.
SEBA said the licence allows it to deal in and distribute both traditional and virtual assets-related securities, such as over-the-counter derivatives and structured products with underlying virtual assets, as well as advise on and conduct asset management for the securities in discretionary accounts, according to a statement on Wednesday.
SEBA first established its wholly-owned Hong Kong subsidiary in November 2022 as part of its Asia-Pacific expansion and said the approval marks its first regulated footprint in the region.
“To have secured this licence from the SFC provides enormous potential for our business, owing to the well-established and defined regulatory framework that is present [in Hong Kong],” said SEBA Hong Kong’s CEO for Asia-Pacifc, Amy Yu.
Hong Kong gets first crypto trading app for retail investors
The company added that it would begin offering its services to institutional and professional investors, corporate treasuries, funds, family offices, and high-net-worth individuals in Hong Kong with immediate effect.
Hong Kong has been pushing to attract more of the virtual assets industry since last year, and on June 1 it rolled out a new virtual asset trading platform (VATP) regime, allowing virtual asset providers to serve retail investors if they become licensed by the SFC.
So far, only two local exchanges, HashKey and OSL Exchange, appear on the SFC’s list of licensed crypto platforms after they had their existing licences upgraded earlier in August.
However, more approvals are expected ahead of June 1, 2024, when a grace period to receive a VATP licence or exit Hong Kong’s market will end. According to a public list provided by the SFC, five exchanges have submitted their applications as of Wednesday and are yet to be approved.
SEBA Bank has already signed a strategic partnership with Hashkey as its “preferred digital asset trading and market development partner in Hong Kong” as of December 2022.
While benefiting SEBA’s business, the city’s latest regulation on crypto also supplements Hong Kong’s status as a global financial services hub, according to SEBA Bank CEO Franz Bergmueller.
“The region’s robust legal system provides a solid foundation to conduct crypto-related services, and we look forward to beginning that from today,” he added.
SEBA Bank first received an in-principle approval from the SFC for virtual asset trading services in late August. The company also operates regulated entities in Switzerland and Abu Dhabi.
In Switzerland, where SEBA Bank was founded in 2018, it offers a suite of virtual asset-related solutions, including staking, lending, custody, investment, trading, banking and deposit.
