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Denmark’s Saxo Bank, which was designated as a systemically important financial institution last month, has been ordered to dispose of its own crypto holdings by the country’s financial regulator.

The order comes because proprietary trading of crypto by banks isn’t currently legal, the Danish Financial Supervisory Authority said Wednesday. “Saxo Bank’s trading with crypto assets for its own account has been done to hedge risks associated with the offering of other financial products. However, this does not change the fact that the activity itself is not allowed for Danish financial institutions…,” the regulator said.

It went on to say that European Union’s crypto regulation, known as markets for cryptoassets regulation (MiCA), only comes into effect from Dec. 30, 2024, and therefore Saxo Bank’s proprietary trading is unregulated for the time being.

The exact value of crypto assets held by Saxo Bank in its proprietary trading account is unclear. The bank did not immediately respond to The Block’s request for comment.

Saxo Bank also offers crypto trading to clients and provides them access to crypto exchange-traded products. Its crypto trading service is offered via fiat pairs, including the U.S. dollar, euro and Japanese yen. Saxo does not allow funding or withdrawal in cryptocurrencies, according to its website.

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