DBS Bank to offer crypto trading in Hong Kong
Singapore-based bank DBS plans to apply for a license to offer crypto trading services in Hong Kong. In recent times, Hong Kong has embraced the crypto industry, which is why major banks such as DBS have planned to enter the market to offer other types 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 work on the matter and regulations will be implemented later this year.
CEO of DBS Bank Hong Kong, Sebastian Paredes, has mentioned:
We plan 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 adopting other policies, 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. Currently, DBS is waiting for the regulations to become sufficient 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 allows accredited investors to trade crypto on its DBS Digital Exchange (DDEx) platform.
Last year, Singapore was seen tightening the noose around the industry’s regulations following the colossal collapse of crypto companies such as FTX and Three Arrows Capital (3AC). However, it is still considered to be among the crypto-friendly nations.
DBS Bank continues to expand its crypto platform for retail investors by joining Singapore’s central bank and leveraging the benefits of decentralized finance technology. The bank announced this news after DBS noted that its net profit recorded a significant increase of 20% in 2022.
Total revenue also marked a 16% gain to 16.5 billion Singapore dollars (SGD), or $12.5 billion. This marked a milestone for Singapore’s economy because its total income has never crossed the SGD 16 billion mark before.
Hong Kong sets its sights on becoming a crypto hub
Paul Chan, the finance minister of Hong Kong, has mentioned that Hong Kong is getting ready to become the next crypto hub. Hong Kong has opened its gates to welcome new businesses into the industry.
In addition, the Hong Kong government strives to formulate regulations in a way where they are in line with international standards. Most nations have begun to re-evaluate their rules since the FTX crash, as that crash has wiped billions of dollars from the industry and lost billions in customer funds.
Hong Kong has prioritized regulating the crypto industry to allegedly allow these businesses to grow. For example, the Hong Kong parliament recently passed anti-money laundering laws and has also targeted terrorist financing systems.
Featured image from White Page International, chart from TradingView.com.
