The Danish Financial Supervisory Authority (FSA) has ordered Danish bank Saxo to divest its crypto holdings. According to the FSA, it is not legally permissible for banks to conduct such activity as ancillary bank business due to financial stability regulations. The statement said, 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…
The FSA also noted that since the European Union’s crypto regulation, known as Markets for Cryptoassets Regulation (MiCA), does not come into effect until December 2024, the activity is currently unregulated. The statement further stated, 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.
Saxo Bank did not immediately respond to CoinDesk’s request for comment.