Singapore's state-owned megabank DBS Group plans to expand its cryptocurrency services to Hong Kong as the Chinese territory strives to become a hub for digital assets.
DBS Bank plans to apply for a license allowing it to offer cryptocurrency trading services to Hong Kong clients, Bloomberg reported on February 13.
โWe are planning to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers,โ said DBS Bank Hong Kong CEO Sebastiรกn Paredes.
Paredes noted that DBS welcomes the new cryptocurrency-related policies in Hong Kong and is also "very sensitive" to the risks associated with digital assets. The bank is set to become one of the first cryptocurrency lenders in Hong Kong once the regulations are fully clear and DBS โexactly understands the framework,โ he added.
DBS Bank made a massive move in the cryptocurrency industry a few years back, Launching Your Institutional Crypto Exchange in Singapore at the end of 2020. The company has also been working to expand your crypto platform to retail investors and apply decentralized financial technology to joint projects with the central bank of singapore.
The news comes in the middle of DBS announcing that its net profit rose 20% to SGD8.19 billion, or $6.7 billion, in 2022. Total revenue rose 16% to SGD16.5 billion ($12.4 billion), outpacing SGD 16 billion for the first time in history.
DBS Bank's plans to expand into Hong Kong come amid China's special administrative region that continues to assert its pro-crypto stance. In January, Hong Kong's financial secretary, Paul Chan, stated that the The Hong Kong government is open to collaboration with cryptocurrencies and fintech startups in 2023. The official also said that many companies in the industry have expressed their willingness to expand their operations in Hong Kong or list on local exchanges.
As previously reported, Hong Kong lawmakers passed a law to establish a licensing system for virtual asset service providers in December 2022. The new regulatory framework is designed to bring the same degree of market recognition to cryptocurrency exchanges as is currently applied to traditional financial institutions.
Related: Hong Kong Securities Regulator Adds Crypto Staff for Industry Oversight
While Hong Kong authorities have recently opened up to cryptocurrencies, Singapore has taken a stricter approach to the cryptocurrency industry following major industry failures in 2022. In October, the Monetary Authority of Singapore proposed ban all forms of cryptocurrency credit following the bankruptcy of Singaporean crypto hedge fund Three Arrows Capital.
Post navigation
