Singapore-based bank DBS plans to apply for a license to help offer crypto trading services in Hong Kong. In recent times, Hong Kong has adopted the crypto industry, so important banks such as DBS have planned to penetrate the market to offer other crypto services.
Hong Kong has been working on a regulatory framework that will govern the industry for some time. According to officials, the Hong Kong government has completed work on the matter, and regulations will be implemented by the end of this year.
CEO of DBS Bank Hong Kong, Sebastian Paredes, has mentioned:
We intend to apply for a license in Hong Kong so that the bank can sell digital assets to Hong Kong customers.
Sebastian Paredes has stated that while bringing in other policies, DBS Bank will remain “very sensitive” and mindful of the risks associated with digital assets. DBS is set to become one of the first lenders to offer crypto in Hong Kong. Currently, DBS is waiting for the regulations to become sufficient to better navigate the market 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 its crypto trading service in Singapore last year. DBS Bank previously discovered this feature, which allows accredited investors to trade crypto on the DBS Digital Exchange (DDEx) platform.
Last year, Singapore appeared to tighten its regulation of the industry after the colossal collapse of crypto companies such as FTX and Three Arrows Capital (3AC). However, it is still considered one of the crypto-friendly countries.
DBS Bank continues to develop its crypto platform for retail investors by teaming up with Singapore’s central bank and leveraging the benefits of decentralized finance technology. The bank announced the news after DBS noted that its net profit will increase by 20% in 2022.
Total revenue also marked a 16% appreciation to 16.5 billion Singapore dollars (SGD), or $12.5 billion. This is a milestone in Singapore’s economic history as total revenue has never surpassed the SGD 16 billion mark before.
Hong Kong Is Becoming A Crypto Hub
Paul Chan, Hong Kong’s Secretary of Finance, stated that Hong Kong is poised 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 is working to create regulations in a way that meets international standards. Most countries have begun to rethink their rules since the fall of FTX, because the crash has removed billions of dollars from the industry and lost billions of client funds.
Hong Kong has prioritized regulating the crypto industry to allegedly allow the business to grow. For example, the Hong Kong parliament has recently passed a law on Anti-Money Laundering and has also targeted the terrorist financing system.
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