Singapore-based bank DBS plans to apply for a license to help offer crypto trading services in Hong Kong. In recent times, Hong Kong has been embracing the crypto industry, which is why significant banks such as DBS have been planning on penetrating the market to offer other kinds of crypto services.
Hong Kong has been working on the regulatory framework that would govern the industry for some time. According to officials, the Hong Kong government has completed its work on the matter, and regulations will be implemented later this year.
DBS Bank Hong Kong CEO, Sebastian Paredes, has mentioned:
We are planning to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers.
Sebastian Paredes has stated that while bringing in other policies, the DBS Bank will remain “very sensitive” and mindful of the risks associated with digital assets. DBS intends to become one of the first lenders to offer crypto in Hong Kong. At the moment, DBS is waiting for regulations to become adequate to navigate the market better by understanding the framework of the industry.
DBS Bank Continues To Move Into The Crypto Industry
DBS Bank continues its journey into the industry after launching crypto trading services in Singapore last year. DBS Bank had previously found this feature, which lets accredited investors trade crypto on its DBS Digital Exchange (DDEx) platform.
Last year, Singapore was seen tightening its noose around the industry’s regulations after the colossal collapse of crypto companies such as FTX and Three Arrows Capital (3AC). It, however, is still considered to be among the crypto-friendly nations.
DBS Bank continues to grow the crypto platform for retail investors by joining Singapore’s central bank and employing the benefits of decentralized finance technology. The Bank announced this news after DBS noted that its net profit registered a considerable increase of 20% in 2022.
The total income also marked an appreciation of 16% to 16.5 billion Singaporean dollars (SGD), or $12.5 billion. This marked a milestone for Singapore’s economy because its total income never crossed the 16 billion SGD mark previously.
Hong Kong Sets Eye On Becoming A Crypto Hub
Paul Chan, the Financial Secretary of Hong Kong, has mentioned that Hong Kong is readying itself to become the next crypto hub. Hong Kong has opened its gates to welcome new businesses in the industry.
Additionally, the Hong Kong government is striving to formulate regulations in a way where it aligns with international standards. Most nations have started to rethink rules since the fall of FTX, as that crash has wiped off billions of dollars from the industry and lost billions in its clients’ funds.
Hong Kong has prioritized regulating the crypto industry to allegedly allow these businesses to grow. For instance, the Hong Kong parliament recently passed laws about Anti-Money Laundering and has also targeted terrorist financing systems.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.