SEBA Bank, a Switzerland-based cryptocurrency bank, has received a license-in-principle to provide cryptocurrency services in Hong Kong. SEBA’s Hong Kong branch announced the achievement on August 8.
The Securities and Futures Commission (SFC) license allows the bank to offer over-the-counter cryptocurrency derivatives and other products in Hong Kong. In addition, SEBA Hong Kong said it will provide virtual asset investment advice, including asset management for selected cryptocurrency accounts.
SEBA sees Hong Kong as gateway to Chinese market
Amy Yu, CEO of SEBA Hong Kong Asia Pacific, commented on the development. Yu said that the SFC’s digital asset regulatory framework makes Hong Kong an attractive hub for crypto service providers. In addition, she pointed out that the clear framework provides great growth potential for Hong Kong’s virtual asset industry.
In addition, the ban on cryptocurrency trading in mainland China provides a huge opportunity for Hong Kong to explore the Chinese market. This is because Hong Kong is a special administrative region of China with a strategic location and close to the mainland.
“Hong Kong is well-positioned to tap into the Chinese market when it opens up,” Yu said. In addition, the SEBA CEO believes it will serve as a gateway for blockchain and cryptocurrency to penetrate the wider Chinese market.
Meanwhile, Yu commented on SEBA’s decision to obtain a local license. She said the bank has received requests from cryptocurrency companies that face challenges in accessing or managing their cryptocurrency assets through traditional service providers.
In addition, SEBA has recorded significant interest from families and private businesses that require professional digital asset management services. In light of these factors, the company decided to apply for a license in Hong Kong.
It is worth mentioning that SEBA provides traditional banking and cryptocurrency services in Switzerland, including cryptocurrency staking, trading, custody and lending.
SEBA joins many other firms in participating in Hong Kong’s regulated cryptocurrency market
The Swiss bank’s in-principle approval comes amid heightened regulatory activity in Hong Kong. Hong Kong launched a regulatory framework for crypto assets in June that aims to curb retail cryptocurrency trading. It requires cryptocurrency trading service providers and exchanges to obtain a license from the SFC.
With the launch of the framework, Hashkey Exchange became the first exchange to obtain a license to provide cryptocurrency trading services in Hong Kong. As reported on August 8, the license allows Hashkey to provide retail trading in Bitcoin and Ethereum.
In addition, on August 8, the P3P trading platform OSL obtained a license from the Securities and Futures Commission to provide retail Bitcoin and Ethereum trading. These two companies are the only cryptocurrency exchanges in Hong Kong that are fully licensed and provide trading services.
However, this is about to change as other companies have taken action to obtain similar approvals in the city. Prior to SEBA, the SFC had issued an in-principle approval to the Hong Kong Virtual Asset Exchange (HKVAX) on August 8. The license allows HKVAX to provide cryptocurrency trading services.
Meanwhile, the Hong Kong move marks the third location where SEBA Bank has sought an operating license, following Abu Dhabi and Switzerland.