Swiss-based crypto-centric SEBA Bank has<a href="https://www.seba.swiss/media-and-investors/seba-hong-kong-awarded-approval-in-principle/" rel="noopener noreferrer nofollow"> secured</a> conditional approval from Hong Kong’s Securities and Futures Commission (SFC) to offer crypto services within the autonomous Chinese territory.While there are stipulations yet to be met before the license is fully granted, the development marks a significant progression when it comes to SEBA’s global business ambitions.<h2 id="header-0">Expanding in Asia</h2>The “approval-in-principle” comes as part of SEBA’s strategic efforts to expand its foothold in the Asian crypto market. Once the conditions are fulfilled and the license is formalized, SEBA will be well positioned to provide Hong Kong with a range of comprehensive crypto services.This includes securities dealing encompassing crypto-related structured products, as well as consultation and management of both digital assets and traditional securities. SEBA sees potential in the offering of derivative products as it has identified demand for derivatives and structured products within the Asian crypto market.This step forward for SEBA follows earlier reports that the bank was actively growing its workforce in pursuit of digital asset licenses for both Hong Kong and Singapore. The company has grown its headcount from seven to 20 across these locations, as it looks to establish a strong presence in the Asian market.The move aligns with Hong Kong’s evolving stance on cryptocurrency and digital finance.<a href="https://medium.com/&#64;coinness.gl/hong-kong-moves-to-enable-retail-crypto-trade-7cafbbb87634" rel="noopener noreferrer nofollow"> Introduced</a> in June, the virtual asset service provider (VASP) license was intended to regulate virtual asset services within Hong Kong’s legal framework. Currently, only two crypto exchanges have secured these licenses.Cryptocurrency exchange HashKey, alongside digital assets platform OSL, became one of the first licensed crypto exchanges in Hong Kong<a href="https://medium.com/&#64;coinness.gl/hashkey-gears-up-to-offer-trading-service-to-retail-traders-b4e81ee011f2" rel="noopener noreferrer nofollow"> recently</a>. Since then, it has expanded its offerings to retail users, allowing them to purchase Bitcoin and Ethereum using US dollars. Leading up to that licensing approval, it had also<a href="https://medium.com/&#64;coinness.gl/hashkey-launches-wealth-management-service-amid-high-demand-21bafc4c42f2" rel="noopener noreferrer nofollow"> launched</a> a wealth management service for high-net-worth individuals and institutional investors. The majority of publicly accessible VASPs remain unregulated, according to a recent statement by the SFC.<h2 id="header-1">Regulatory balance</h2>The Hong Kong Monetary Authority (HKMA) has also shown interest in fostering relationships between established financial institutions and crypto exchanges, further signaling the region’s growing engagement with the crypto space. It’s also pointing towards getting the balance right between enabling digital asset innovation and having sufficient regulation in place to protect investors. In May, its CEO, Eddie Yue,<a href="https://medium.com/&#64;coinness.gl/hong-kong-says-no-to-light-touch-regulation-c33a0c8e316f" rel="noopener noreferrer nofollow"> stated</a> that Hong Kong wouldn’t be a place for light touch regulation.The licensing process in Hong Kong hasn’t been without its difficulties. The interest in obtaining crypto trading licenses caught the SFC flat footed as it found itself<a href="https://medium.com/&#64;coinness.gl/banking-difficulties-remain-in-hong-kong-for-crypto-start-ups-44d272b01fc4" rel="noopener noreferrer nofollow"> understaffed</a> to work through the licensing applications that arrived at its door. The backlog prompted commentary from SEBA’s CEO for the Asia Pacific (APAC) region, Amy Yu, back in May, with Yu highlighting that the backlog had increased significantly over the course of nine months.While SEBA has broken into the market in the APAC region via its efforts in Hong Kong, it’s understood that the bank has plans to develop its business in Singapore further over the course of the coming months.

SEBA Bank Receives Conditional Approval for Crypto Services in Hong Kong

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