The bank has also been ordered to dispose of its own crypto that it holds against market risk.
According to the FSA regulator (Danish Financial Supervisory Authority), banks in the country are not allowed to conduct proprietary crypto trading operations, nor can they hold their own digital assets. Word was spread about this in the regulator's statement issued on Wednesday.
Danish regulator orders Saxo Bank to dispose of its own holdings of cryptoassets, saying banks aren’t allowed to conduct proprietary trading under current regulations https://t.co/eT7njPPXYn— Bloomberg Crypto (@crypto) July 5, 2023
Saxo Bank based in Copenhagen was proclaimed a systemically important financial institution last month, and since then, it has been under heavy scrutiny by the regulator. The spokesperson for Saxo Bank said that the management will carefully read the regulatory decision and follow the requirements.
This prohibition related to crypto will hardly have a big impact on the business of the financial institution since trading digital assets was only a tiny part of it.
The new regulatory rules about crypto that were passed in the EU parliament recently will essentially become effective only from the end of next year.