Danish authorities are ordering an $11 billion investment bank to get rid of its digital asset holdings after deeming the firm’s trading activities unlawful.
According to a new press release by The Danish Financial Supervisory Authority, Saxo bank must dispose of its crypto assets in adherence to the regulator’s declaration that local banks are not allowed to hold crypto to hedge against other trading activities.
“Saxo Bank A/S’ trading in crypto assets for its own account has taken place in order to cover risks in connection with the offering of other financial products. However, this does not change the fact that the activity, in itself, is not permitted for Danish financial institutions… On this basis, Saxo Bank is ordered to dispose of its own holdings of crypto assets.”
The bank was allowing customers to trade in crypto assets as well, another action which, according to the regulator, goes against Danish law.
“Unregulated trading in crypto assets can create distrust in the financial system, and the Danish FSA considers that it would be unfounded to legitimize trading in crypto assets.
The activity is therefore also not found to be acceptable as ancillary bank business for reasons of financial stability, cf. section 24 of the Financial Business Act.”
No deadline is mentioned as to when the bank must drop its cryptocurrency holdings.
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