DBS Group, a state-owned megabank based in Singapore, is eyeing the opportunity to expand its cryptocurrency services to Hong Kong as the city strives to become a hub for digital assets.
Despite the new regulatory framework expected to go into effect on June 1, 2023, DBS Bank is gearing up to apply for a license that will allow it to provide cryptocurrency trading services to its clients in Hong Kong.
According to the bank’s CEO, Sebastian Paredes, DBS Bank is “very sensitive” to the dangers associated with digital assets but still supports the new crypto-related policies in Hong Kong. Once the rules are clear, and the framework is understood, the bank is poised to be one of the first financial institutions in Hong Kong to offer cryptocurrency services.
DBS Bank has already made a significant push into the cryptocurrency market, launching its institutional crypto exchange in Singapore in 2020. The bank has also been actively putting decentralized finance technologies to use in joint initiatives with Singapore’s central bank.
Furthermore, the bank has been expanding its cryptocurrency platform to individual investors, making it more accessible to a wider range of clients.
However, the crypto laws in Singapore have become stricter in 2022 following the failures of several crypto companies, particularly crypto lender Hodlnaut, hedge fund Three Arrows Capital (3AC), and a general market downturn. Despite this, Singapore still remains one of the most crypto-friendly nations.
In December 2022, Hong Kong approved legislation to establish a licensing scheme for companies offering virtual asset services. The new regulatory framework aims to provide the same level of market acceptance for cryptocurrency exchanges as traditional financial institutions.
The new legislation is expected to take effect on June 1, 2023, requiring virtual exchanges to comply with strict AML laws and investor protection standards before being granted a license to operate in Hong Kong.
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