SEBA Bank Secures Nod in Principle for Crypto Services in Hong Kong

Summary

• Swiss crypto bank SEBA Bank has been granted an approval-in-principle by Hong Kong's securities regulatory body and is now one step away from providing virtual asset services in the region.
• Final licenses will be issued by the Securities and Futures Commission upon fulfillment of stipulated conditions.
• Once authorized, SEBA Bank will be able to deal in securities transactions, alongside crypto-related structured offerings.

Crypto-friendly Swiss bank SEBA Bank announced on Wednesday that it has been granted an approval-in-principle by Hong Kong's securities regulatory body. This places the bank a mere step away from providing virtual asset services within the thriving Asian financial landscape.

SEBA Bank's Hong Kong division revealed that final licenses will be issued by the Securities and Futures Commission upon fulfillment of stipulated conditions. Once authorized, the bank will be able to deal in securities transactions, alongside crypto-related structured offerings. Additionally, it will be able to advise on and manage digital assets and traditional securities. 

This positive development follows the introduction of a regulatory framework in June, specifically designed to oversee retail cryptocurrency trading. Compliance with this framework mandates crypto trading platforms and exchanges to obtain licenses for operating within the city.

This initiative arises in the wake of a year marked by crypto turmoil, which notably marked the downfall of crypto exchange FTX.

Hong Kong marks the third jurisdiction wherein SEBA Bank has pursued licensing, after Switzerland and Abu Dhabi. The approval-in-principle status now enables SEBA to make necessary preparations to kick off operations post-licensing.