Danish authorities order Saxo Bank to wind down cryptocurrency trading

FSA of Denmark has ordered the local Saxo Bank to liquidate its positions in digital assets by the end of 2024. Bloomberg reports.

The regulator explained that proprietary cryptocurrency trading is not among the activities permitted for financial institutions.

Saxo Bank launched a platform for clients to trade cryptocurrencies. For hedging purposes, the firm added an undisclosed amount of digital assets to its balance sheet.

The new rules governing crypto markets will take effect by the end of 2024, and the field remains unregulated for the time being, the FSA reminded.

“Engaging in such activity may undermine trust in the financial system,” — the statement says.

In June, Members of the European Parliament agreed a transitionalprudential regime for the protection of the financial system from ‘unbacked cryptocurrencies’. It is designed to reduce risks for banks holding such assets.