- Swiss crypto-focused SEBA Bank receives provisional approval in Hong Kong.
- The company said it will be able to launch its services once it meets certain standards.
- Hong Kong introduced a regulatory framework for crypto trading last June.
Swiss crypto-focused SEBA Bank inches further to offering virtual asset services in Hong Kong after it received provisional approval from the region’s Securities and Futures Commission (SFC), according to a Reuters report. The company said the approval-in-principle will allow it to prepare for operations as soon as it is licensed.
SEBA Bank says with the license, it will be regulatory compliant and be able to offer its services to users in the region. In addition, the business stated that it will be able to trade securities, including crypto-related assets, and advise on and manage digital assets and traditional securities. Once it fulfills certain conditions given by Hong Kong’s SFC, SEBA Bank can fully launch its services.
The regulatory framework, launched in June last year, came on the back of several crypto institutional collapses and financial losses. Precipitated first by the Terra-Luna wipeout, the FTX collapse later in 2022 also forced many countries to increase their scrutiny of crypto institutions. The Asian financial hub has since managed crypto trading platforms and exchanges to obtain the licenses to operate in the country.
In a statement, Asia-Pacific CEO of SEBA Hong Kong, Amy Yu, said Hong Kong has several potentials the company hopes to tap from. She added that while China still has a ban on crypto trading, it doesn’t affect crypto operations in Hong Kong, a Special Administrative Region of China. Furthermore, she stated that the absence of crypto-related trade and Hong Kong’s strategic proximity to China would allow Hong Kong businesses to break into the Chinese market when it opens up.
Before applying to set up shop in Hong Kong, the company had previously secured licenses in Switzerland, where it is headquartered, and Abu Dhabi. SEBA Bank in Switzerland offers regular banking and cryptocurrency services such as trading, staking, lending, and custody.
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