- Operation Chokepoint 2.0 now appears to have spread beyond the borders of the U.S. as authorities in Denmark have ordered local banks to divest from their cryptocurrency holdings, with regulators saying that trading cryptocurrencies is “outside the legal scope of banks.”
Saxo Bank holds cryptocurrency as a way to hedge against trading risks associated with “crypto-active” products offered to clients through the bank, which includes exchange-traded funds , and exchange-traded notes . It also offers direct access through “cryptocurrency crosses,” which are trading products that track the price of a cryptocurrency versus a specific fiat currency.
“Appendix 1 of the Financial Business Act is an exhaustive list of activities that are clearly covered by the legal scope of financial institutions,” the DFSA said. “Trading in crypto assets is not stated in Appendix 1 of the Financial Business Act.” “Unregulated trading in crypto assets can create distrust of the financial system, and the Danish Financial Supervisory Authority finds that it would be unfounded to legitimize trading in crypto assets,” the regulator said. “Thus, the activity is also not found to be acceptable as ancillary banking for the sake of financial stability."