Danish authorities are ordering an $11 billion investment bank to dispose of its digital asset holdings after deeming the company’s trading activities illegitimate.
According to a new press release from the Danish Financial Supervisory Authority, Saxo Bank must sell its crypto assets in line with the regulator’s statement that local banks should not hold crypto to hedge against other trading activities.
“Saxo Bank A/S trades crypto-assets on its own account to hedge risks associated with offering other financial products. However, this does not alter the fact that the activity itself is not allowed for Danish financial institutions… Based on this, Saxo Bank is being instructed to dispose of its own holdings of crypto assets.”
The bank also allowed clients to trade crypto assets, another move the regulator says violates Danish law.
“Unregulated crypto-asset trading can create distrust in the financial system, and the Danish FSA believes it would be unfounded to legitimize crypto-asset trading.
The activity is therefore not considered acceptable as an ancillary business of the bank for reasons of financial stability, cf. section 24 of the Financial Business Act.”
No deadline is mentioned when the bank must drop its holdings of cryptocurrency.
Don’t Miss Out – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on TwitterFacebook and Telegram
Surf the Daily Hodl mix
Featured image: Shutterstock/archy13/Sensvector