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