DBS is reportedly seeking a crypto trading license in Hong Kong
Singapore-based banking giant DBS said it plans to apply for a license to offer crypto trading services in Hong Kong as the city ramps up efforts to become a regional crypto hub. Officials in Hong Kong recently said the government had finalized its crypto regulatory framework, which is expected to take effect later this year.
DBS bets on crypto
DBS, the largest bank in Singapore, intends to apply for a license to start offering crypto trading services in Hong Kong, Bloomberg reported on Monday. The move is in line with Hong Kong’s ambitions as the Chinese territory seeks to restore its regional economic hub status.
“We plan to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers.”
– said Sebastian Paredes, CEO of DBS Bank (Hong Kong).
DBS’s deeper foray into crypto comes after the bank introduced its crypto trading service in Singapore last year. The bank launched a feature that allows accredited investors to trade cryptocurrencies on the DBS Digital Exchange (DDEx).
However, Singapore tightened crypto regulations in 2022 following the collapses of high-profile crypto firms such as Three Arrows Capital (3AC) amid a broader market downturn. Historically, Singapore has been seen as one of the most crypto-friendly countries in the world.
Join our Telegram group and never miss a story about digital values.
Hong Kong Completes Crypto Regulation Framework Amid Efforts to Restore Fintech Hub Status
Earlier this month, Hong Kong Hong Kong’s Financial Secretary Paul Chan said the government has completed the development of its crypto regulatory framework. The new framework needed to issue licenses to digital asset providers is expected to enter into force in June 2023.
In its briefing, DBS said it welcomes the Hong Kong guidelines, adding that it is very aware of the risks associated with crypto-assets. Sebastian Paredes, chief executive of DBS Hong Kong, said DBS would be one of the interested lenders once the regulations in Hong Kong are clear and the bank “exactly understands the framework”.
Hong Kong announced in October 2022 its plan to legalize crypto retail via a mandatory licensing program as part of its broader plan to become a crypto hub after years of political turmoil and punishing Covid-19 crackdowns. City-state officials said regulators would allow trading of significant crypto tokens, claiming they would not support specific coins such as Bitcoin or Ether. Meanwhile, the Hong Kong government said last month that it wants to launch tokenized green bonds for institutional investors.
Economy is changing.
Find out how, with Five Minute Finance.
A weekly newsletter covering the major trends in FinTech and decentralized finance.
Do you think Hong Kong can become one of the global crypto hubs in the coming years? Let us know in the comments below.
About the author
Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
