- Crypto investment bank SEBA has obtained an official operational license in Hong Kong.
- The bank previously received Hong Kong’s In-principle approval from the regulatory commission.
- The cryptocurrency industry in Hong Kong remains promising despite recent challenges.
2023 has seen Hong Kong emerge as an ally for the cryptocurrency industry, cementing its position as a potential digital hub. While recent regulatory hurdles such as the infamous JPEX exchange scandal may have cast shadows on the region’s resilience, Hong Kong has persevered, drawing more and more entities to its vibrant ecosystem.
Now looking to leverage the momentum is Switzerland-based crypto bank Seba, making bold strides toward becoming a regulated entity in the burgeoning crypto landscape.
SEBA Bank Secures Full License In Hong Kong
On November 8, SEBA Bank announced that its subsidiary SEBA Hong Kong received an operational license from the Securities and Futures Commission (SFC), marking its first regulated entry into the Asia-Pacific region.
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Following its initial acquisition of the Hong Kong Approval-in-principle on August 30th, the new license allows SEBA Hong Kong to offer regulated activities, including virtual assets such as OTC derivatives and structured products with underlying virtual assets.
The license also enables institutional and professional investors in Hong Kong to access advisory services for securities and virtual assets, along with asset management for discretionary accounts in traditional and digital assets.
CEO APAC, SEBA Hong Kong Amy Yu emphasized the importance of the license approval, stating, “We are tremendously excited by Hong Kong’s deep-rooted capital markets and appetite for investment and trading; to have secured this license from the SFC provides enormous potential for our business, owing to the well-established and defined regulatory framework that is present here.”
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The approval reaffirms Hong Kong’s dedication to nurturing a leading digital hub and promoting an accommodating regulatory regime.
Hong Kong’s Crypto Commitment
Hong Kong’s journey to becoming a digital hub has been marked with resilience.
On November 2nd, during the recently concluded Hong Kong Fintech week, the Secretary for Hong Kong’s Financial Services and Treasury, Christopher Hui, reaffirmed the government’s good faith in the cryptocurrency industry despite the recent regulatory challenges involving cryptocurrency exchange JPEX.
He underlined the focus on updating policies governing crypto assets sales and requirements and guidance on intermediaries involved in tokenized securities-related activities.
With the establishment of a new task force to combat illicit crypto exchange activities, the Securities and Futures Commission (SFC) is also bolstering regulatory efforts and investor protection.
On the Flipside
- Tokenization has emerged as a pivotal focus for Hong Kong’s regulatory landscape, and the Securities and Futures Commission (SFC) will target security tokenization in new regulatory guidelines.
- Hong Kong is considering allowing retail investors to access spot exchange-traded (ETF) funds that invest directly in crypto.
- The Hong Kong Central Bank has concluded the first phase of its joint CBDC initiative study, unveiling valuable insights into potential e-HKD use cases.
Why This Matters
SEBA Bank’s acquisition of the operational license marks a milestone for Hong Kong’s local cryptocurrency industry, reaffirming the region’s commitment to becoming a leader in the global crypto ecosystem.
To dive deeper into the JPEX Scandal that put Hong Kong’s crypto-friendly stance to the test, read here:
Hong Kong Telecoms Block JPEX in Connection with $166M Fraud
Coinbase suffers a setback in its expansion plans as Kazakhstan blocks user access and trading services. Read more:
Coinbase Banned in Kazakhstan for Breaching Crypto Law
