Denmark's financial watchdog ordered Saxo Bank, the local investment bank, to get rid of its holdings in crypto, declaring that such practices contradict current regulations. According to the Danish Financial Supervisory Authority (DFSA), Saxo Bank, which offers customers a platform to trade crypto, also holds its own crypto assets as a hedge against market risk. However, such activity violates local regulation. The authority explained that trading crypto assets does not appear to be covered by the legal business area of financial institutions in Denmark. At the same time, the DFSA mentioned that crypto trading remains unregulated for the time being because EU regulations on crypto markets won’t come into effect until late 2024. Saxo Bank has been under close scrutiny lately after being named a systemically important financial institution in June. The bank’s spokesperson noted that Saxo Bank holds a “very limited portfolio of cryptocurrencies.” “Therefore, the FSA’s decision will have a very limited impact on our business, and our customers will not experience any significant changes,” the representative added.
