Singapore’s state-owned megabank DBS Group plans to expand its cryptocurrency services to Hong Kong as China seeks to become a digital asset hub.
DBS Bank plans to apply for a license that will allow it to offer cryptocurrency services to Hong Kong customers, according to Bloomberg. informed February 13.
“We plan to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong clients,” said Sebastian Paredes, CEO of DBS Bank Hong Kong.
Paredes noted that DBS welcomes the new cryptocurrency policy in Hong Kong and is also “very sensitive” to the risks associated with digital assets. The bank is poised to become one of the first lenders to offer cryptocurrencies in Hong Kong once the rules are fully clear and DBS “understands the structure precisely,” he added.
DBS Bank took a massive step into the cryptocurrency industry a few years ago by launching its institutional crypto exchange in Singapore at the end of 2020. The company is also working on expanding its crypto platform for retail investors and applying decentralized finance technology for joint projects with the Singapore Central Bank.
The news comes against the backdrop of DBS announcement that its net income rose 20% to a record 8.19 billion Singapore dollars (SGD), or $6.7 billion, in 2022. Total revenue increased by 16% to S$16.5 billion ($12.4 billion), surpassing S$16 billion for the first time in history.
DBS Bank plans to expand its activities in Hong Kong are due to the fact that the Special Administrative Region of China continues to reaffirm its position in support of cryptocurrencies. In January, Hong Kong financial secretary Paul Chan said that the Hong Kong government is open to cooperation with crypto and fintech startups in 2023. The official also said that many industry firms have expressed willingness to expand their operations in Hong Kong or go public. local exchanges.
As previously reported, Hong Kong legislators passed legislation establishing a licensing system for virtual asset service providers in December 2022. The new regulatory framework is intended to bring the same degree of market recognition to cryptocurrency exchanges as that currently applicable to traditional financial institutions.
Hong Kong Securities Regulator Adds Crypto Staff to Oversee Industry
While Hong Kong authorities have recently opened up to the crypto industry, Singapore has taken a stricter approach to the crypto industry following major disruptions to the industry in 2022. In October, the Monetary Authority of Singapore proposed a ban on all forms of cryptocurrency lending following the bankruptcy of Singapore-based crypto hedge fund Three Arrows Capital.
Credit : cointelegraph.com
