The Danish Financial Supervisory Authority (FSA) has instructed Saxo Bank, a local financial entity, to liquidate its crypto-asset positions by the end of 2024.
The regulator pointed out that financial institutions are not allowed to provide their own crypto trading services.
Saxo Bank had previously added an undisclosed quantity of digital assets to its balance sheet to provide hedging through its platform.
However, the FSA noted that the crypto markets remain unregulated until the end of 2024:
“Any activity in this sector may create an atmosphere of distrust in the financial system,” the statement concluded.
In the meantime, the European Parliament recently agreed to introduce a transitional prudential regime aimed at protecting the financial system from unsecured cryptocurrencies and reducing the risks for banks that own such assets.
