Amy Yu, SEBA’s chief executive officer for APAC, told The Block that the company sees enormous potential in Hong Kong and Singapore with strong demand from crypto firms for fully-fledged banking services. 

“We see no issues in obtaining [a full official approval] by the end of this year,” said Yu, who joined SEBA in February 2023. 

“By the time I started, it was very clear that Hong Kong regulators were super gung-ho. They want to make a big push, facilitate as much as they could, and welcome these businesses back into the jurisdiction,” she added. 

In November last year, SEBA Bank expanded into Hong Kong with a new office just a month after Hong Kong authorities released a series of policy statements on cryptocurrencies, suggesting it would reopen to firms focused on digital assets. 

In December, Hong Kong’s Legislative Council passed an amendment introducing a full licensing regime for crypto platforms to offer retail trading services. 

SEBA’s Hong Kong subsidiary currently works primarily with its Zug0based parent company to offer services. “We will work very closely with our Zug parent because [on the] initial stages right at license grant, the Hong Kong subsidiary is going to operate more like an introducing broker to start,” Yu said. 

“We do have a lot of clients in Asia that are very interested in the banking piece of our offering,” Yu continued, adding that the company’s plan is to work more and more autonomy into the Asia businesses as much as possible. “This, I see, is going to b e really important for localization and providing a better product to the Hong Kong market.” 

Hong Kong and Singapore markets are top priorities for SEBA in Asia, according to Yu. 

“After Hong Kong, we’ll continue exploring licensing processes in other jurisdictions such as Singapore, which has always been the plan to look at Hong Kong and Singapore first,” Yu said. 

Tether Leaning on Bahamas-Based Britannia As US Banks Cut Crypto Ties

According to a Bloomberg report, stablecoin issuer Tether has added Britannia Bank & Trust, a private bank based in the Bahamas to process dollar transfers on its platform. 

Tether has reportedly instructed clients to send money to Britannia’s bank account over the last few months. 

Noting that Tether hasn’t publicly disclosed the full extent of its banking relationships, Patrick Tan, the general counsel for ChainArgos stated, 

“The secrecy surrounding Tether’s banking relationships continues to be a major impediment for developing the cryptocurrency industry, deterring regulatory approvals on other matters, and discouraging traditional asset managers with little tolerance for regulatory risk fro more active participation in the space.” 

The privately-held Tether has struggled to obtain and maintain access to the traditional financial system. In 2017, Wells Fargo & Co. ended its role as a correspondent bank through which customers in the US could send money to Tether and Bitfinex’s banks in Taiwan. 

Still, prior to the closure of New York-based Signature Bank in march, some clients of Tether were able to pay for the stablecoins by sending dollars to one of Tether’s banking partners Capital Union Bank via Signature Bank, Bloomberg previously reported. 

Paolo Ardoino, the chief technology officer of Tether, told Bloomberg in March that its banking partners include Bahamian lenders Deltec Bank & Trust Ltd. and Capital Union Bank, while Cantor Fitzgerald is a custodian for Tether’s Treasury bill holdings. 

In 2021, Tether reached a settlement with the New York’s Attorney General over allegations that it lied about its reserves and hid losses. 

Amid US scrutiny on the industry, it’s been challenging for many crypto firms to secure banking partners in the US. Earlier this month, the Federal Reserve said it’s stepping up scrutiny of banks’ involvement in digital assets, including stablecoin activity, after the meltdown of several high-profile crypto firms. 

Britannia Financial Group is a London-headquartered financial services firm that’s been raising its profile in recent years after buying several businesses, including a specialist commodities brokerage. Its chief executive officer, Mark Bruce, joined the group in January 2022 from Jump Trading, where he served as the head of fixed income, currencies and commodities for the business development team.