SEBA Bank secures in-principle nod for crypto services in Hong Kong

August 30, 2023 Coin Telegraph

approval

SEBA Hong Kong’s approval joins a flurry of regulated crypto activity that’s taken place over the past month.

The Hong Kong arm of crypto-friendly Swiss bank SEBA Bank has received in-principle approval from the Hong Kong Securities and Futures Commission (SFC) allowing it to deal in virtual assets.

On Aug. 30, SEBA Hong Kong said its in-principle approved license would allow it to operate with crypto products such as over-the-counter derivatives, advise on virtual assets and conduct asset management for discretionary accounts in virtual assets.

Speaking to Cointelegraph the Asia-Pacific CEO of SEBA Hong Kong Amy Yu said Hong Kong provides enormous potential due to the SFC’s virtual asset regulatory framework and the city’s legal system.

Yu added while China has a crypto trading ban, Hong Kong is “well-positioned to tap into the Chinese market when it opens up” as its in a strategic location in being close to the mainland, while also being a Special Administrative Region of China.

“Hong Kong may once again serve as a gateway to China, delivering the significant potential of cryptocurrencies and blockchain technology.”

On its decision to pursue a local license, Yu said SEBA received inquiries from crypto companies who had “difficulty in accessing and managing their digital assets holdings via traditional providers” along with interest from private wealth and family offices.

In Switzerland, SEBA Bank offers both traditional banking and crypto services such as trading, staking, lending and custody.

SEBA’s approval in principle comes amid a flurry of regulated crypto activity in Hong Kong.

Crypto exchange HashKey — the first exchange in Hong Kong to get regulatory clearance — was reported to begin offering retail trading in Bitcoin (BTC) and Ether (ETH) on Aug. 28.

Its peer trading platform OSL also received the SFC’s approval to offer retail trading. HashKey and OSL are currently the only two fully licensed exchanges in Hong Kong.

That may soon change as on Aug. 11 the Hong Kong Virtual Asset Exchange (HKVAX) was given in-principle approval from the SFC to operate a crypto trading platform.

Magazine: Asia Express: China’s risky Bitcoin court decision, is Huobi in trouble or not?

Blockchain.com scores payment license from Singapore central bank

August 7, 2023 Coin Telegraph

Australia’s financial regulator cancels license for FTX’s local entity

July 19, 2023 Coin Telegraph

AFS

ASIC had previously suspended FTX's license to operate in Australia, now the securities regulator has canceled it entirely.

The Australian financial services regulator has finally canceled the financial license of FTX Australia, the bankrupt crypto exchange's local subsidiary — effective July 14.

On July 19, the Australian Securities and Investments Commission (ASIC) announced the cancellation, before noting that FTX Australia will still be allowed to provide limited financial services while it wraps up its dealings with clients until July 12 next year.

It would still be bound to make arrangements for compensating clients until that time, the regulator said. FTX Australia had around 30,000 retail clients and serviced 132 local companies.

In November 2022, ASIC suspended FTX Australia's Australian Financial Services (AFS) license which allowed it to create derivatives and foreign exchange contracts to local clients.

ASIC has cancelled the Australian financial services licence held by FTX Australia https://t.co/Gsmsg9XcYj
— ASIC Media (@asicmedia) July 19, 2023

The suspension came just days after the Bahamian-based FTX filed for bankruptcy on Nov. 11, 2022.

The same day as FTX's bankruptcy, voluntary administrators from the Sydney-based investment and advisory firm KordaMentha were appointed to assist in restructuring FTX Australia and a subsidiary, FTX Express.

In a report to a United States bankruptcy court last month, the restructuring chief for FTX's global entity said it had recovered around $7 billion in liquid assets but estimated a total of $8.7 billion worth of customer assets were allegedly misappropriated.

It's reported FTX could re-launch as an entirely new exchange, with its restructuring team holding talks with parties potentially interested in financially backing such a reboot.

Asia Express: China expands CBDC’s tentacles, Malaysia is HK’s new crypto rival

Nearly 400 Crypto Firms Lose Their Estonian Licenses Under New Rules

May 11, 2023 Bitcoin.com

Crypto exchange BitGet seals Lithuanian crypto registration

April 20, 2023 Coin Telegraph

Bitget

Seychelles-based cryptocurrency exchange BitGet secures green light to operate in Lithuania.

Cryptocurrency trading platform BitGet has officially registered as a service provider in Lithuania, allowing the Seychelles-based firm to operate in the European country.

An announcement from the exchange notes that it has met compliance standards with regional laws and regulations in the Baltic state. The country is identified as an emerging digital asset market in Europe and a haven for cryptocurrency and blockchain projects.

A recent report from Bloomberg notes that the country saw a fivefold increase in cryptocurrency company registrations through 2022 as companies looked to secure registrations in the Baltic nation after Estonia revoked hundreds of operating licenses as part of a crackdown in the country in late 2021.

BitGet noted that Lithuania remains a favorable hotspot for cryptocurrency users as well as companies looking to register legal entities to offer cryptocurrency-related services.

As a result, the cryptocurrency derivatives exchange has looked to bolster its compliance efforts according managing director Gracy Chen:

“The global regulation of digital assets is advancing on a daily basis, and we actively observe the regulatory changes around the globe. We have a whole dedicated compliance team in place to focus on various regulatory compliance matters.”

BitGet has been operating since 2018 and serves some 8 million users from over 100 countries.

Lithuania also looked to tighten rules for cryptocurrency-related businesses registering in the Baltic state in June 2022. Legal amendments to Anti-Money Laundering (AML) and counter-terrorism financing were proposed to enforce tighter requirements for user identification and exchange operators.

Exchanges and crypto-service providers must register as a corporate body with a minimal threshold for startup capital investments of 125,000 euros.

As reported by Bloomberg, Lithuania is also home to Bifinitey UAB, which is the payments provider for Binance Holdings Ltd. Data from Lithuania’s tax authority shows that the firm was the second biggest contributor of corporate tax in 2022.

BitGet's Lithuanian registration comes in the same week as the European parliament is expected to pass the anticipated Markets in Crypto-Assets legislation.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?