DBS Bank offers cryptocurrency trading in Hong Kong
Singapore state-owned megabank DBS Group plans to expand its cryptocurrency services to Hong Kong as the Chinese territory pushes to become a digital asset hub.
DBS Bank plans to apply for a license to allow it to offer crypto trading services to Hong Kong customers, Bloomberg reported on February 13.
“We plan to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers,” said Sebastian Paredes, CEO of DBS Bank Hong Kong.
Paredes noted that DBS welcomes new crypto-related policies in Hong Kong and is also “very sensitive” to the risks associated with digital assets. The bank is willing to become one of the first lenders to offer crypto in Hong Kong once the regulations are completely clear and DBS “exactly understands the framework,” he added.
DBS Bank made a massive move into the cryptocurrency industry a few years ago, launching its institutional crypto exchange in Singapore in late 2020. The company has also been working on expanding its crypto platform to retail investors and using decentralized finance technology for joint projects with Singapore’s central bank.
The news comes amid DBS announcing a 20% rise in net profit to a record 8.19 billion Singapore dollars (SGD), or $6.7 billion, in 2022. Total revenue rose 16% to SGD 16.5 billion (12, USD 4 billion), passing 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 continuing to reaffirm its pro-crypto stance. In January, Hong Kong Finance Secretary Paul Chan declared that the Hong Kong government is open to cooperation with crypto and fintech startups in 2023. The official also said that many industrial companies expressed willingness to expand operations in Hong Kong or go public on local exchanges.
As previously reported, Hong Kong lawmakers passed legislation to set up a licensing system for virtual asset service providers in December 2022. The new regulations are designed to provide the same level of market recognition to crypto exchanges as is currently available to traditional financial institutions.
Related: Hong Kong’s securities regulator adds crypto staff for industry oversight
While Hong Kong authorities have recently opened up to crypto, Singapore has taken a stricter approach to the crypto industry in the wake of major industry failures in 2022. In October, the Monetary Authority of Singapore proposed to ban all forms of cryptocurrency credit following the bankruptcy of Singaporean crypto hedge fund Three Arrows Capital.
