thenewscrypto.com
- Hong Kong has made concerted efforts to entice businesses of the digital asset industry.
- The DBS Bank in Singapore already runs a digital currency exchange.
DBS Group Holdings Ltd. plans to apply for a license that would allow it to offer cryptocurrencies to customers in Hong Kong as the region works towards becoming a hub for digital assets.
The DBS Bank in Singapore runs a digital currency exchange, which it made available for cryptocurrency trading late last year. The city-state has become more stringent after major players in the industry, such as the Three Arrows Capital hedge fund and the crypto lender Hodlnaut, were wiped out by the slump of 2022.
On Monday, DBS Bank Hong Kong CEO Sebastian Paredes remarked,
“We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.”
Enticing Businesses of Crypto Sector
Last month, Hong Kong’s Financial Secretary Paul Chan reaffirmed the city’s commitment to developing into a key center for regional cryptocurrency trading. The city has made concerted efforts to entice businesses of the digital asset industry. He also said back then that additional crypto licenses will be issued and that their criteria were in line with global norms.
Several other companies in the cryptocurrency industry have also declared bankruptcy. After that, the SEC began investigating other companies, the most recent being Kraken.
By the end of 2022, Hong Kong has expanded its AML/CFT legislation to include virtual asset service providers. It’ll provide a brand-new licensing structure for businesses that offer virtual asset services. On June 1st, 2023, it will become effective.
This means that virtual exchanges applying for a license to operate in Hong Kong will be subject to strict anti-money-laundering legislation and investor protection standards.