Danish financial watchdog says Saxo Bank must “dispose of crypto holdings”

The government authority has accused the bank of adhering to unregulated trading in crypto-assets

Denmark’s financial regulator has ordered the Danish bank Saxo Bank to discard its crypto holdings.

Currently, Saxo Bank allows its customers the opportunity to trade with several crypto assets through the bank’s platform, offering exchange-traded funds and exchange-traded notes.

However, the Danish Financial Supervisory Authority (DFSA) declared it illegal for banks to conduct such activity.

“Saxo Bank’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,” a recent statement read.

“However, this does not change the fact that the activity, in itself, is not permitted for Danish financial institutions.”

Moreover, the statement made clear that since the new EU markets in crypto-assets regulation law will not come into effect until 2024, the bank’s activity is unregulated for the time being.

“Unregulated trading in crypto-assets can create distrust in the financial system, and the DFSA considers that it would be unfounded to legitimize trading in crypto-assets.”

Therefore, the government ministry said the bank is breaching the legal business area of financial establishments including section 24 of the Financial Business Act, and thus, has been ordered to discard its crypto holdings.

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Written by Isabella Aslam


Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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