Criptobank SEBA Bank opens Hong Kong office amid global crypto turmoil

In this April 9, 2018 photo, a man walks past Tamar Park in Admiralty with the skyline of Hong Kong's financial district. PHILIP FONG AFP Switzerland-based criptobank SEBA Bank AG opened its Hong Kong office on Wednesday amid turmoil in the global criptocurrency market, a vote of confidence in a city set to become a global virtual asset hub.

The lender's market expansion comes as a number of large crypto companies collapsed this year, sending shockwaves through the largely unregulated industry. On Monday, US-based BlockFi filed for bankruptcy protection a victim of its financial ties to the Bahamas-based FTX, which filed for US bankruptcy protection earlier this month.

Despite these issues, there is a growing demand for crypto in the Asia-Pacific region, and the Hong Kong office and its executive team will cater to this market, according to Franz Bergmueller, CEO of SEBA Bank.

The Hong Kong Special Administrative Region government issued a Policy Statement on the Development of Virtual Assets in Hong Kong last month, setting out a clear vision of building the city into an international virtual-asset center.

The measures include the creation of a new licensing regime for virtual-asset providers, the tokenization of green bonds and the introduction of the e-HKD, Hong Kong's proposed digital currency.

With a considerable pedigree as an international financial center and supportive regulatory approach to cryptocurrencies, Hong Kong is cementing its position as a global leader in cryptocurrencies, Bergmueller said.

The SEBA Bank adopts a stringent security and deposit protection policy that makes its service secure and transparent.

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Client assets are held in segregated accounts, off the balance sheet, to ensure that assets are always available for client withdrawal, SEBA Bank said in a statement.

The SEBA Bank was founded in 2018 and offers regulated virtual-asset services, including trading, credit, structured products, as well as non-fungible token custody.