DBS Bank to Provide Digital Asset Services to Hong Kong Customers
As Hong Kong aims to establish itself as a hub for digital assets, DBS Bank Group, a state-owned megabank in Singapore, plans to extend its cryptocurrency services to the Chinese colony. The bank is in the process of applying for a license in Hong Kong, which would allow it to sell digital assets to its customers in the region.
DBS Bank CEO Addresses Concerns Over Digital Asset Risks
DBS Bank Hong Kong CEO Sebastian Paredes stated that the bank is extremely sensitive to the risks associated with digital assets and welcomes the introduction of new crypto-related legislation in Hong Kong. Paredes said that the bank is willing to become one of the first lenders to offer crypto services in Hong Kong once the regulations are clear.
DBS Bank’s Foray into the Cryptocurrency Market
DBS Bank launched its institutional bitcoin exchange in Singapore in late 2020 as part of a major push into the cryptocurrency market. The bank has also been exploring decentralized finance technologies in partnership with Singapore’s central bank and expanding its cryptocurrency platform to individual investors.
Hong Kong Reaffirms Pro-Crypto Stance
DBS Bank’s plans to expand in Hong Kong come as the SAR of China continues to show its support for the crypto industry. Paul Chan, the financial secretary for Hong Kong, recently stated that the government is open to working with cryptocurrency and fintech businesses in 2023. The recent approval of a licensing framework for virtual asset services in Hong Kong is a step towards giving cryptocurrency exchanges the same level of market acceptance as traditional financial institutions.
In contrast to Hong Kong’s pro-crypto stance, Singapore has adopted a more restrictive approach to the crypto business, particularly in the wake of significant industry failures in 2022. The Monetary Authority of Singapore has recommended a ban on all types of bitcoin credit following the failure of the Singaporean cryptocurrency hedge fund Three Arrows Capital in October.