By George Ward
The Swiss crypto banking platform SEBA Bank has entered into a strategic partnership with the digital asset finance company, HashKey. The duo target more institutional adoption of digital assets across countries where it has a strong foothold.
As part of the partnership, HashKey will be SEBA Bank’s crypto trading partner while SEBA Bank becomes the bank partner for HashKey in Hong Kong and Switzerland, respectively.
The collaboration became official after the two parties signed a Memorandum of Understanding (MoU). Furthermore, at the partnership’s core is the focus on onboarding institutional investors into the crypto space by providing them exposure to digital asset products.
According to Franz Bergmueller, the CEO of SEBA Bank, Hong Kong has crypto-friendly regulations. Bergmueller further said the Asian nation is the leading country with a comprehensive licensing process for digital financial products and services.
The CEO disclosed that SEBA Bank is looking to explore the local crypto market and extend its operations in Asia through its partnership with HashKey.
With SEBA Group opening a branch in Hong Kong, the crypto-based bank seeks a fully licensed partner in the country, and HashKey perfectly fits the bill.
HashKey obtained its operating license from Hong Kong’s financial watchdog (SFC) early in November. Similarly, SEBA Bank is the first Swiss financial platform to be granted a license to offer crypto custody services in 2021.
The new partnership will expand its international reach beyond the country’s shores.
Rising Regulatory Scrutiny Amid the FTX Debacle
As the industry continues to battle with the aftermath of the FTX contagion, expansions, partnerships, and funding rounds are still ongoing. However, the regulatory view of the crypto space is getting more scrutiny.
Many key industry players are bracing for the next round of strict guidelines as regulators continue their push for oversight functions following the FTX crash.
According to reports, some hedge funds were preparing their digital asset teams before the FTX crash. But they have halted their plans due to increased regulatory uncertainty.
It is reported that the American stock exchange platform Nasdaq set up its crypto custody solutions services three months ago to offer institutional Bitcoin and Ether custody services.
However, the need for a defined crypto rule has made it difficult for Nasdaq and other interested firms to accelerate their move into the digital asset ecosystem.
Meanwhile, many regulators believe that the volatility in the crypto sector can spread to traditional finance, so more stringent laws are necessary. Aside from the Market in Crypto Asset Regulation (MiCA) bill, which has yet to be implemented, no other guideline has been introduced to oversee the crypto market in some regions.
The United States has a long way to go in developing comprehensive crypto regulations, as most of its regulators need to figure out their specific roles.