Key Takeaways:
- Seba Bank inches closer to dealing in crypto assets in Hong Kong after a nod from the local regulator.
- Hong Kong gears up to play a pivotal role in crypto as it takes on Singapore for Asia’s financial hub.
Seba Bank Moves Closer to Operating in Hong Kong
Cryptocurrency-focused financial institution Seba Bank has received an in-principle approval from Hong Kong’s securities watchdog. The city’s Securities and Futures Commission has vowed to grant the permit after Seba Bank meets the full list of requirements.
Once the final regulatory nod is given, the Swiss-native will expand its footprint to Hong Kong, offering its securities to local clientele. Mainly, these will include crypto-related structured products. The bank will also be providing consultation and advice on managing digital assets and traditional equity.
Hong Kong is Seba Bank’s third target market where the institution seeks to secure a foothold through a license. Switzerland and Abu Dhabi are leading the list.
Seba Bank was backed by Red Acre Ventures in its $119M Series C fundraising.
Hong Kong Emerges as Asia’s Bright Spot for Crypto
Early in 2023, Hong Kong doubled down on its pro-crypto regulatory environment in a bid to attract the best and brightest of the looming blockchain industry. At a Web3 forum, the city’s financial secretary, Paul Chan, praised Hong Kong’s latest regulatory framework tweaks, designed to more easily integrate digital-asset companies into the overall business landscape.
The Chinese territory is preparing to issue more licenses for trading platforms as well as to offer consultation on crypto-native firms in an effort to encourage participation.
What does that mean in simple terms?
While crypto is fully banned in mainland China, Hong Kong is seen breaking away and gearing up to play a pivotal role in crypto after the late-2022 meltdown reshaped the industry.
With Singapore tightening the screws, after home-based Three Arrows Capital and others imploded, Asia is heading for a reshuffling into the digital asset space. It is only natural that rival regions, such as Hong Kong, may want to come forward and soak up the demand.