The licensed Swiss cryptocurrency bank SEBA has received in-principle approval from the SFC to conduct digital-asset–related activities in Hong Kong.
The licence will allow the company to work with securities, including crypto-linked instruments such as over-the-counter derivatives and structured products.
SEBA also obtained the right to provide consultancy and asset-management services on fiduciary accounts.
In an interview with The Block CEO Amy Yu, who oversees the APAC, said the organisation sees enormous potential in Hong Kong and Singapore amid strong demand from crypto firms for banking services.
“We do not expect any problems obtaining full official approval by the end of this year,” she predicted.
Initially, the local unit will operate as a sub-broker to the parent company.
According to Yu, the bank plans to obtain licences in other regional countries later, primarily in Singapore.
In November 2022, SEBA Bank opened an office in Hong Kong. A month earlier, the Financial Services and Treasury Bureau published a statement of eased restrictions on cryptocurrencies and a willingness to engage with providers of virtual-asset services.
In December, trading began on the Hong Kong Stock Exchange for two ETFs linked to US-listed futures on digital assets. This followed the passage by the Legislative Council of amendments introducing a full licensing regime for crypto platforms offering trading services to retail investors.
Back in August 2023, the SFC-licensed HashKey began trading Bitcoin and Ethereum for the wider public.
Earlier applications were filed by Bitcoin exchanges Huobi, OKX and OSL.