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?

Clear regulations will accelerate crypto adoption, says SEBA Bank exec

March 7, 2022 Coin Telegraph

bank

“In the medium-long term, I expect engagement with crypto to accelerate prompted by a clearer regulatory environment,” SEBA Bank's Christian Borel told Cointelegraph.

With crypto being in the sights of many regulators, many have wondered if regulation is good or bad for crypto. However, Christian Borel, Senior Executive Officer at SEBA Bank, says that if the laws are clear, it may push crypto adoption forward.

In a Cointelegraph interview, the banking executive mentions that institutions are likely to adopt crypto following the advent of clear regulations. Additionally, the presence of “regulated counterparties” within the banking industry creates a secure and trusted way for institutions and their stakeholders to have access to the crypto sector.

“I expect to see a considerable acceleration in engagement and adoption of digital assets by institutions prompted by a clearer regulatory environment as these institutional players will require a regulated counterparty in which to operate securely.”

Borel also noted that digital assets are in line with the interests of institutions when it comes to finding new prospects. “Institutional investors have always been very attentive to new investment opportunities and their interest in the digital assets sector is coherent with this approach,” says Borel.

The executive also thinks that because it caters to the needs of many, the industry will have more digital asset banks in the future. A digital asset bank is very similar to a traditional bank. According to Borel, a digital asset bank offers “a full suite of traditional banking services.” However, these are tailored for the digital economy as they have a wide range of crypto-structured products.

“I believe that digital asset banks will be increasingly ubiquitous as the digital economy grows, adapting to the evolving needs of clients and prospects in the fast-paced digital asset economy.”

When asked about the benefits that digital assets can bring to both institutions and individuals, Borel described crypto as an “appealing alternative” as the other option is to stick with “low-interest rates and low return on investment.”

Back in January, Guido Buehler, CEO of SEBA Bank predicted that Bitcoin (BTC) could go up to $75,000. This may happen as institutional money flow into the cryptocurrency. According to Buehler, asset pools are trying to find the right moment to invest in BTC.

Seba Bank raises $119M in Series C funding

January 12, 2022 Coin Telegraph

Banking

“This funding will allow us to further develop our digital asset banking platform and strengthen our presence in global markets by attracting new talent,” says Guido Buehler, CEO of Seba Bank

Seba Bank, a Swiss-based digital assets banking platform regulated by the Swiss Financial Market Supervisory Authority, announced on Wednesday that it had completed a successful Series C funding round of 110 million Swiss franc, or $119 million U.S. dollars. Notable investors in the round included cryptocurrency exchange FTX, quantitative digital currency trading firm Alameda Research, decentralized finance asset management firm DeFi Technologies, and venture capital entities such as Altive, Ordway Selections and Summer Capital.

The bank said it plans to use the funds to fuel international growth and drive demand from institutional investors in the digital assets industry. Seba has been at the forefront of crypto innovation in Switzerland. In September 2021, the firm was granted the first Swiss digital asset custody license. One month later, it launched a program for users to earn yields on their DOT, XTZ and ADA holdings. In December 2021, the bank launched its own regulated gold token exchangeable with physical gold on-demand, which could potentially be used as a gold-standard digital currency. Seba Bank became fully operational to professional investors and institutional clients in 2019.

Jonathan Ordway Fackelmayer, Chairman of Ordway Selections, issued the following statement regarding the development:

“We are delighted to be part of the lead-investor consortium alongside Altive and Summer Capital. They both hold a deep knowledge of financial services and technology applications. Our consortium believes SEBA Bank is uniquely positioned to respond to the needs of the ever-growing and demanding pool of cryptocurrency investors worldwide.”