DBS Group, a Singapore-based megabank, intends to extend its cryptocurrency services into Hong Kong as the Chinese territory strives to become an established digital asset center. DBS Bank will apply for permission that would enable it to offer crypto trading solutions to clients in Hong Kong.
DBS Bank Hong Kong CEO Sebastian Paredes declared that the bank is poised to acquire a license in Hong Kong, allowing them to offer digital assets for purchase by their consumers based in Hong Kong.
Paredes highlighted that DBS is ready to explore the introduction of new crypto-related policies in Hong Kong yet remains keenly aware of any risks posed by digital assets. The bank has expressed its readiness to be one of the first lenders offering services related to cryptocurrency once regulations are established.
DBS Bank launched its institutional crypto exchange in Singapore in 2020 and has been working tirelessly to expand its platform to retail investors. Additionally, the company is utilizing decentralized finance technology for joint projects with Singapore’s central bank.
Also, DBS reported that it has experienced about a 20% uptick in its net profit, reaching a record 8.19 billion Singaporean dollars (SGD), equivalent to $6.7 billion in 2022. In addition, total income increased 16%, exceeding their target of 16 billion SGD ($12.4 billion) for the first time.
DBS Bank’s decision to expand into Hong Kong is coming at the perfect time, as China’s unique administrative region continues to support crypto. Paul Chan, Hong Kong’s financial secretary, declared that there would be a collaboration with fintech startups in 2023. Numerous companies have expressed interest in expanding their operations or going public on local exchanges.
Hong Kong Legislators approved a new law to create licensing requirements for virtual asset service providers by December 2022. This legislation will give crypto exchanges similar recognition as traditional monetary institutions, allowing these services to be more widely accepted and regulated in the financial sector.
Recently, Hong Kong has become more open to the crypto industry, while Singapore took a much stricter approach in light of the setback in the crypto industry back in 2022. In October, Singapore’s Monetary Authority proposed prohibiting all types of cryptocurrency credit due to Three Arrows Capital’s insolvency.