coinculture.com
As the Chinese territory strives to become a digital asset hub, the Singaporean megabank DBS Group plans to expand its cryptocurrency services to Hong Kong.
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Bloomberg reported on February 13 that DBS Bank intends to apply for a license allowing it to offer crypto trading services to Hong Kong clients.
DBS Bank Hong Kong CEO Sebastian Paredes stated, “We are planning to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers.”
According to Paredes, DBS welcomes new crypto-related laws in Hong Kong and is exceptionally attentive to the dangers linked with digital assets. Once the legislation is completely established and DBS properly understands the framework, the bank is eager to become one of the first to provide cryptocurrency loans in Hong Kong.
A few years ago, DBS Bank made a massive leap into the cryptocurrency business, and in late 2020, it will establish its institutional crypto exchange in Singapore. Additionally, the firm has been expanding its crypto platform to individual investors and using decentralised finance technology to collaborate on projects with Singapore’s central bank.
In 2022, DBS reported that its net profit increased by 20% to a record 8.19 billion Singaporean dollars (SGD), or $6.7 billion. The total income rose 16% to 16.5 billion Singapore dollars, surpassing 16 billion Singapore dollars for the first time in history.
DBS Bank’s expansion ambitions to Hong Kong coincided with China’s unique administrative region reaffirming its pro-cryptocurrency attitude. Paul Chan, Hong Kong’s financial secretary, stated that the government of Hong Kong would be open to collaborating with crypto and fintech businesses in 2023. Many industrial enterprises desire to extend their operations in Hong Kong or to list on local markets.
As previously reported, Hong Kong lawmakers enacted legislation in December 2022 to establish a licensing framework for virtual asset service providers. The new legal framework is intended to give crypto exchanges the same market recognition already available to traditional financial institutions.
Singapore has taken a stricter stance on the crypto business in the wake of significant industry failures in 2022, whilst Hong Kong authorities have lately been more accepting of crypto. After the Singaporean crypto hedge fund Three Arrows Capital failed, the Monetary Authority of Singapore considered banning all types of crypto loans in October.