Saxo Bank Closed as Denmark Bans Cryptocurrency Trading
Customers of Danish banks are not permitted to engage in cryptocurrency trading.
The bank has also been told to unload whatever cryptocurrency reserves it possesses to reduce exposure to price volatility.
The Danish Financial Supervisory Authority (FSA) prohibits commercial banks in the nation from engaging in proprietary cryptocurrency trading or holding digital assets. The news circulated thanks to a statement released by the authority on Wednesday.
Since last month, when the Danish regulator declared the Copenhagen-based Saxo Bank to be a systemically significant financial institution, the bank has been subject to intense scrutiny. A representative for Saxo Bank said that management will review the regulatory decision thoroughly.
Since trading digital assets represented a very minor portion of the financial institution’s operations, this ban on cryptocurrency will have little effect.
The new crypto regulations enacted by the EU parliament this month won’t take full effect until the end of next year.