SEBA Bank, a financial services provider, has announced that it has received an approval-in-principle (AIP) for a license that would enable it to provide various digital asset services to Hong Kong residents.
The AIP was granted by the Hong Kong Securities and Futures Commission (SFC), according to a statement from SEBA Bank. This development takes the company one step closer to realizing its ambitions of participating in the digital asset ecosystem in the region, pending the issuance of a full license.
Upon receiving a full license, SEBA will have the capacity to offer a range of services to institutional clients, including over-the-counter (OTC) derivatives and digital asset management services.
Amy Yu, SEBA Hong Kong CEO APAC, expressed enthusiasm about being at the forefront of innovation in Hong Kong, a prominent financial and technological hub. She highlighted that the AIP represents a positive direction for SEBA Group, which aims to serve crypto investors in jurisdictions recognizing the value of digital assets.
Yu also emphasized SEBA’s commitment to meeting all SFC requirements, including regular audits and adhering to best practices for the custody of digital assets. Compliance with Virtual Asset Service Providers (VASPs) regulations, which mandate clear separation of clients’ funds from proprietary assets to prevent asset commingling, is crucial.
While the timing of the SFC’s issuance of a full license to SEBA remains uncertain, SEBA may be allowed to operate within strict regulatory boundaries.
Franz Bergmueller, SEBA Bank Group CEO, commented on SEBA Hong Kong’s AIP, emphasizing the team’s dedication to compliance and due diligence as essential pillars of the digital economy’s future.
The Swiss-based financial institution has been expanding its presence in recent months, with a focus on Southeast Asia as a promising region for growth. In 2022, SEBA established operations in Hong Kong, offering wealth management and advisory services to entities across the Asia Pacific region. SEBA has already obtained global licenses in Switzerland and the United Arab Emirates (UAE), and now adds Hong Kong to its list of approvals.
Hong Kong throws its weight behind Web3
Hong Kong, following its announcement to become a prominent Web3 hub, has swiftly initiated several strategies to realize its objectives. Authorities have acted promptly to set up a regulatory framework for participants in the industry and have granted approval for retail traders to engage in digital currency trading.
Additionally, they have introduced various initiatives, including the establishment of a Web3 fund, the creation of incubation hubs to nurture digital asset service providers, and a commitment to provide banking services support to international companies. These initiatives have enticed global corporations to invest millions of dollars in securing operational licenses from the Securities and Futures Commission (SFC).