Byline: Hannah Parker
Switzerland-based crypto bank, SEBA Bank, has announced that its wholly owned subsidiary, SEBA Hong Kong, has received a full licence from the city’s Securities and Futures Commission (SFC).
According to the data available on the SFC website, SEBA received the licence on November 3 2023. The regulatory approval for SEBA enables the bank to engage in a wide range of financial activities, including handling advisory of digital and traditional assets. SEBA Bank will also allow the Swiss firm to offer various clients, from institutional and professional investors, corporate treasuries, and funds to family offices and high-net-worth individuals.
Overview
CEO of SEBA Hong Kong, Amy Yu, expressed enthusiasm about the SFC’s final nod, addressing Hong Kong’s prominence in finance and innovation.
Yu said, “The region’s position at the forefront of finance, trading, and innovation has long been attractive to us, as servicing APAC clientele is an integral aspiration of the team’s DNA… We are tremendously excited by Hong Kong’s deep-rooted capital markets and appetite for investment and trading.”
The CEO of SEBA Bank, Franz Bergmueller, echoed the sentiment, emphasising the importance of the operation in Hong Kong for the bank’s global scope. He said, “The region’s robust legal system provides a solid foundation to conduct crypto-related services and we look forward to beginning that from today.”
SEBA Bank’s Licensing Timeline
Experts at Bitcoin Apex UK mentioned that the Switzerland-based SEBA Bank announced in August 2023 that it received an approval-in-principle (AIP) from the SFC, moving it one step closer to the full licence acquired today. The approved licence allowed SEBA Hong Kong to operate with crypto products such as over-the-counter derivatives, advice on virtual assets and conduct asset management for discretionary accounts in digital assets.
Yu highlighted that Hong Kong is well-positioned to tap into the Chinese market the moment it opens up. It is in a strategic location close to the mainland as a Special Administrative Region of China. Yu said, “Hong Kong may once again serve as its gateway to China, delivering the significant potential of cryptocurrencies and blockchain technology.” SEBA Bank has been actively pushing towards institutional crypto custody and partnered with the Swiss bank SGKB to provide Bitcoin (BTC) and Ether (ETH) custody and trading services.
At the beginning of November 2023, SGKB revealed that the service was initially available to a select group of wealth-management clients at the firm and will expand the offering to retail users soon. Head of B2B and Custody Solutions at SEBA Bank, Christian Bieri, said, “St.Galler Kantonalbank and SEBA signed the contract earlier this year, after a short implementation project, SGKB is now ready to offer access to cryptocurrencies to a selected group of clients.” Bieri emphasised that the move marks SGKB’s first step into the digital world and is a way to meet the client’s evolving financial preferences. Head of Market Services at SGKB, Falk Kohlmann, said, “Thanks to our cooperation with SEBA Bank, we’ve implemented a straightforward initial setup, which allows us to learn and grow well aligned to our clients’ needs.”
On the other hand, Hong Kong aims to thrive as an international crypto hub despite global scrutiny. In August, Hong Kong announced that it had issued licences to crypto companies under a new regulatory regime. Retail investors were allowed to trade crypto on exchanges licensed by the SFC.
The Washington Post noted, “It’s unclear if the regulations are attractive enough to entice firms to invest heavily.” During Hong Kong FinTech Week 2023, the city’s financial regulators demonstrated confidence and persistence in support of digital asset regulations and Web3 innovation despite the recent crackdowns on crypto exchanges such as JPEX.
In September 2023, Hong Kong retained the top crypto-ready position for widespread crypto adoption in 2023, retaining its position for two consecutive years. Hong Kong’s place in the global crypto economy made favourable regulations for crypto companies to flourish; out of 100 firms that showed interest in opening branches in Hong Kong when the government announced licensing, only a number managed to secure approval. HashKey started offering Bitcoin and Ether crypto trading services in Hong Kong to retail customers. HashKey became the first crypto exchange in Hong Kong to get regulatory clearance to offer crypto trading services to retail traders after upgrading two major licences issued by the SFC.
This move by the Securities and Futures Commission means that SEBA Bank operates globally from its regulated hubs of Switzerland, Abu Dhabi and Hong Kong. SEBA’s acquisition of the licence in Hong Kong shows that it continues to monitor the regulatory landscape and is determined to identify further collaboration opportunities for global growth.
