Denmark's Financial Watchdog Orders Saxo Bank to Shed its Crypto Holdings

Danish slope Saxo has been ordered by Denmark's fiscal regulator to shed its ain crypto holdings, the authorization announced connected Wednesday.

The Danish Financial Supervisory Authority's (FSA) explained that it isn't ineligible for banks to behaviour specified enactment arsenic ancillary slope concern for reasons of fiscal stableness nether existent regulations.

"Saxo Bank A/S' trading successful crypto assets for its ain relationship has taken spot successful bid to screen risks successful transportation with the offering of different fiscal products," the connection said. "However, this does not alteration the information that the activity, successful itself, is not permitted for Danish fiscal institutions ..."

The fiscal watchdog besides said that since the European Union's crypto regulation, known arsenic markets for cryptoassets regularisation (MiCA), lone comes into effect from 30 December 2024, the enactment is unregulated for the clip being.

"Unregulated trading successful crypto-assets tin make distrust successful the fiscal system, and the Danish FSA considers that it would beryllium unfounded to legitimize trading successful crypto-assets," the connection said.

Saxo slope did not instantly respond to CoinDesk's petition for comment.