Swiss Crypto Bank SEBA Gains Preliminary Approval for Operations in Hong Kong from the SFC

Introduction

SEBA Bank, originating from Switzerland and specialising in cryptocurrency, has achieved a preliminary green light from the regulatory body of Hong Kong, indicating its expanding foothold in the Asian crypto realm.

Key Highlights

1. Acquisition of Preliminary Approval: SEBA has disclosed that they have secured an Approval-in-Principle (AIP) which paves the way for them to handle securities, inclusive of digital finance instruments like over-the-counter derivatives.
2. Expansion of Services: With this move, SEBA will have the capacity to provide guidance related to both securities and digital assets. Additionally, they can undertake asset administration for accounts that operate on discretion, dealing in both classic securities and online assets.
3. SEBA’s Position in Hong Kong: The SEBA subsidiary located in Hong Kong has been bestowed with a preliminary nod by the Hong Kong Securities and Futures Commission (SFC), marking their advancement in the virtual asset segment.

Insights from the Regional Leadership

Amy Yu, the regional CEO for SEBA in the Asia-Pacific region, expressed optimism regarding the possibilities in Hong Kong, attributing it to the robust regulatory framework concerning digital assets by the SFC. She noted the city’s law system as an added advantage. Despite China’s ongoing embargo on crypto trading, Yu believes that Hong Kong’s strategic geographical proximity and its status as China’s Special Administrative Region positions it advantageously to tap into the Chinese market in the future.

Yu further shed light on SEBA’s ambitious vision for the regions of Hong Kong and Singapore, citing a surge in demand from crypto establishments for comprehensive banking solutions.

Hong Kong as a Crypto Hub

• SEBA’s Asian Endeavour: The previous year saw SEBA inaugurating its office in Hong Kong, which coincided with the local administration’s announcement of policy directives relating to cryptocurrencies. Following this, the Legislative Council of the city sanctioned a comprehensive licensing structure for crypto platforms.
• Collaboration with Zurich Counterpart: As of now, SEBA in Hong Kong chiefly collaborates with its parent establishment located in Zurich. However, the intention is to instill a greater degree of autonomy for the Asian branches in the foreseeable future.
• SEBA’s Priority Markets: SEBA underscores the significance of the Hong Kong and Singapore markets in its Asian operations.

Emerging Crypto Landscape in Hong Kong

Recent times have witnessed an upsurge in regulated crypto transactions in the city. HashKey, a crypto exchange, emerged as the foremost to achieve regulatory endorsement in Hong Kong and initiated retail trading for Bitcoin. Furthermore, trading platform OSL also succeeded in securing approval from the SFC for retail trading, positioning them alongside HashKey as the two exclusive fully accredited exchanges in the city.

However, the dynamics might shift shortly with the Hong Kong Virtual Asset Exchange (HKVAX) also obtaining a preliminary approval from the SFC, highlighting the city’s growing embrace of cryptocurrency.

Conclusion

SEBA Bank’s burgeoning influence in the crypto banking sector and its endeavors in Asia, especially in Hong Kong, spotlight the region’s evolving stance and growing acceptance of the cryptocurrency landscape.