DBS Bank Will Provide Bitcoin Trading In Hong Kong

Key Points:

• Hong Kong strives to become a hub for digital assets, Singapore’s state-owned megabank DBS Group plans to extend its cryptocurrency services to the Chinese colony.
• DBS Bank Hong Kong CEO Sebastian Paredes stated, “We are preparing to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.
• The information was released at the same time that DBS reported a 20% increase in net profit to a record 8.19 billion Singaporean dollars (SGD), or $6.7 billion, in 2022. For the first time ever, total income exceeded 16 billion SGD thanks to a 16% increase to 16.5 billion SGD ($12.4 billion).

Hong Kong strives to become a hub for digital assets, Singapore’s state-owned megabank DBS Bank Group plans to extend its cryptocurrency services to the Chinese colony.

According to Bloomberg, DBS Bank intends to submit an application for a license that will enable it to provide Hong Kong customers with cryptocurrency trading services.

DBS Bank Hong Kong CEO Sebastian Paredes stated, “We are preparing to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.

Paredes stated that DBS is “extremely sensitive” to the risks linked with digital assets and that it welcomes new crypto-related legislation in Hong Kong. The bank is willing to become one of the first lenders offering crypto in Hong Kong once the regulations are fully clear and DBS “understands exactly the framework,” he added.

DBS Bank launched its institutional bitcoin exchange in Singapore in late 2020

DBS Bank launched its institutional bitcoin exchange in Singapore in late 2020 as part of a major foray into the cryptocurrency market a few years ago. Additionally, the business has been putting decentralized finance technologies to use in joint initiatives with Singapore’s central bank and expanding its cryptocurrency platform to individual investors.

The information was released at the same time that DBS reported a 20% increase in net profit to a record 8.19 billion Singaporean dollars (SGD), or $6.7 billion, in 2022. For the first time ever, total income exceeded 16 billion SGD thanks to a 16% increase to 16.5 billion SGD ($12.4 billion).

DBS Bank’s aspirations to grow in Hong Kong coincide with the SAR of China’s continued reaffirmation of its pro-crypto stance. Paul Chan, the financial secretary for Hong Kong, stated in January that the Hong Kong government is open to working with cryptocurrency and fintech businesses in 2023. The official added that many business organizations have expressed a desire to increase their operations in Hong Kong or to list on local exchanges.

As was previously reported, in December 2022, MPs in Hong Kong approved legislation to establish a licensing framework for companies that offer virtual asset services. The new regulatory framework is intended to give cryptocurrency exchanges the same level of market acceptance as the one that is currently in place for traditional financial institutions.

Singapore has adopted a more restrictive stance toward the crypto business in the wake of significant industry failures in 2022, in contrast to Hong Kong authorities, which have lately begun to open up to cryptocurrency. Following the failure of the Singaporean cryptocurrency hedge fund Three Arrows Capital in October, the Monetary Authority of Singapore recommended to outlaw all types of bitcoin credit.

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