Hong Kong’s goal to become a global center for digital assets is being met by the DBS Group, a Singaporean megabank that is entirely controlled and managed by the Singaporean government. It is now planning to offer cryptocurrency services in China.
Bloomberg reported that DBS Bank will apply for a license in order to provide cryptocurrency trading services for clients in Hong Kong.
Sebastian Paredes is the CEO of DBS Bank Hong Kong. He stated that the bank intends to apply for a Hong Kong license so that it can offer digital assets to clients based in Hong Kong.
Paredes said that DBS is “extremely vulnerable” to the risks associated with digital assets. However, DBS is excited about Hong Kong’s new crypto-related rules. DBS will be able to offer cryptocurrency services once the regulations have been fully clarified and DBS has “understood properly the framework”, he stated.
DBS Bank announced plans to launch an institutional cryptocurrency exchange in Singapore at the end 2020. This was a major step into the cryptocurrency market a few years back. In addition, DBS Bank has worked to increase the accessibility of its cryptocurrency platform for retail investors. They have also been using decentralized financial tech to support collaborative initiatives with Singapore’s central bank.
DBS announced the announcement shortly after it revealed that its annual profit increased by 20% to 8.19 Billion Singaporean Dollars (SGD), a record equivalent to $6.7 Billion in the United States.
The total revenue increased by 16% to 16.5 Billion Singapore Dollars, which is $12.4 billion. This surpasses 16 billion Singapore Dollars for the first time ever in history.
DBS Bank announced plans to expand its operations to Hong Kong amid China’s special administrative regions continuing to support crypto. Paul Chan (the finance secretary of Hong Kong) announced that the government of Hong Kong is open to working in crypto and fintech companies in 2023. A large number of fintech companies have expressed their intention to expand operations in Hong Kong, or go public on the local market.
According to previous reports, Hong Kong legislature passed legislation which would establish a licensing system that would allow virtual asset service providers. This will be in December 2022. The new regulatory framework will give cryptocurrency exchanges the same market recognition that traditional financial institutions have now.
After major industry failures, Singapore has adopted a stricter approach to cryptocurrency business. This comes as Hong Kong authorities have been slowly relaxing their stance. cryptocurrencies Recent months. In October, the Monetary Authority of Singapore enacted legislation to ban all types of bitcoin loans after the collapse of Three Arrows Capital, a Singaporean cryptocurrency hedge fund.