DBS Group and other large financial institutions are pursuing Hong Kong’s new crypto services.
As Hong Kong strives to become a digital asset hub, Singapore state-owned megabank DBS Group plans to extend its bitcoin services.
Report on February 13 show that DBS Bank will seek for a crypto trading license for Hong Kong customers.
“We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers,” DBS Bank Hong Kong CEO Sebastian Paredes said.
DBS welcomes new crypto-related laws in Hong Kong and is “very sensitive” to digital asset concerns, Paredes said. He said that once the legislation are established and DBS “understands properly the framework,” the bank would be one of Hong Kong’s first crypto lenders.
In late 2020, DBS Bank launched its Singapore institutional crypto exchange. The business is also targeting retail investors and using decentralized finance technologies in collaborative ventures with Singapore’s central bank.
DBS reported a 20% increase in 2022 net profit to 8.19 billion Singaporean dollars (SGD), or $6.7 billion. For the first time, total income reached 16.5 billion SGD ($12.4 billion), up 16%.
DBS Bank’s Hong Kong expansion coincides with China’s special administrative region’s pro-crypto position. In January, Hong Kong financial secretary Paul Chan said the government will work with crypto and fintech businesses in 2023. The official said that several industrial businesses wanted to develop in Hong Kong or go public on local markets.
As reported, Hong Kong lawmakers authorized a virtual asset service provider license scheme in December 2022. The new legal framework gives crypto exchanges the same market recognition as regular financial organizations.
After massive sector failures in 2022, Singapore has tightened crypto regulations while Hong Kong has relaxed them. Following the Three Arrows Capital bankruptcy, the Monetary Authority of Singapore suggested banning all bitcoin loans in October.
