DBS to Offer Crypto Trading in Hong Kong as City Seeks Hub Status
DBS, a banking giant based in Singapore, has expressed its intention to seek a license to offer cryptocurrency trading services in Hong Kong.
This comes as the city is ramping up its efforts to establish itself as a leading crypto hub in the region. The government of Hong Kong has recently finalized its crypto regulatory framework, which is expected to go into effect later in 2023.
In its bid to expand into the crypto market, DBS introduced its crypto trading services in Singapore last year and now aims to offer the same services to its customers in Hong Kong. CEO of DBS Hong Kong, Sebastian Paredes, stated that the bank plans to apply for a license in Hong Kong so that it can sell digital assets to its customers there.
Although Singapore has been traditionally viewed as one of the most crypto-friendly nations, it tightened its regulations on the crypto industry in 2022 following the collapse of several high-profile crypto businesses. Meanwhile, the Hong Kong government has completed its crypto regulatory framework and will be issuing licenses to digital asset service providers starting in June 2023.
DBS is aware of the risks associated with crypto assets and will be closely monitoring the regulatory framework in Hong Kong. CEO Sebastian Paredes stated that the bank would be among the interested lenders once the regulations are clear and the bank fully understands the framework.
Hong Kong has made significant strides in its efforts to become a leading crypto hub, legalizing retail crypto trading through a mandatory licensing program and exploring the launch of tokenized green bonds for institutional investors. The authorities have stated that they will allow the trading of significant crypto tokens but will not endorse specific coins like Bitcoin or Ethereum.