According to reports on July 5, the Danish Financial Supervisory Authority (FSA) has ordered investment bank Saxo to sell its cryptocurrency holdings as the country’s financial institutions are banned from cryptocurrency trading activities. . statement.

“On July 4, 2023, the Danish Financial Supervisory Authority found that Saxo Bank A/S’s crypto asset trading on its own account was outside the statutory scope of business for financial institutions, including Article 24 of the Financial Business Act. I made a decision.”

The FSA said that although Saxo’s cryptocurrency holdings are used to hedge market risks associated with Saxo’s cryptocurrency-related products, the Financial Services Act does not include cryptocurrency trading as a legitimate business field for financial institutions. pointed out that it did not.

Cryptocurrency trading in Saxo Bank A/S proprietary accounts is undertaken to cover the risks associated with the provision of other financial products. However, this does not change the fact that the act itself is not permitted for Danish financial institutions according to Article 7(1). 1. Based on the Financial Business Act. ”

According to authorities, the bank’s “unregulated cryptocurrency trading could cause distrust in the financial system, and the Danish Monetary Authority considers legalizing cryptocurrency trading to be unfounded.” There is.

The FSA further noted that until the European Union’s Crypto Asset Market (MiCA) regulations come into force in December 2024, cryptocurrency trading activity “remains unregulated” at this time.

MiCA is a landmark cryptocurrency bill passed unanimously by the European Union on May 16, with the aim of providing a regulatory framework for crypto-assets to ensure financial stability and consumer protection in Europe. is.

Meanwhile, Denmark has introduced a cryptocurrency gains tax in its own jurisdictions, following tightening regulations. In March, the country’s Supreme Court ruled in two cases that profits from the sale of Bitcoin (BTC) are taxable.

Danish Authorities Order Saxo Bank to Sell Crypto Holdings Due to Distrust of Financial System First published on CryptoSlate.

By Jules

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