Sebastian Paredes, chief executive of DBS Bank Hong Kong, made the announcement during a briefing on Monday, saying, “We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.” Paredes said that DBS understands the risks associated with digital assets and is willing to become one of the first lenders offering crypto in Hong Kong once the regulations are clear and DBS “understands exactly the framework” around participation.
DBS Bank continues its journey into the industry after launching crypto trading services in Singapore last year. DBS Bank had previously found this feature, which lets accredited investors trade crypto on its DBS Digital Exchange (DDEx) platform. Last year, Singapore was seen tightening its noose around the industry’s regulations after the colossal collapse of crypto companies such as FTX and Three Arrows Capital (3AC). It, however, is still considered to be among the crypto-friendly nations.
DBS Bank continues to grow the crypto platform for retail investors by joining Singapore’s central bank and employing the benefits of decentralized finance technology. The Bank announced this news after DBS noted that its net profit registered a considerable increase of 20% in 2022. The total income also marked an appreciation of 16% to 16.5 billion Singaporean dollars (SGD), or $12.5 billion. This marked a milestone for Singapore’s economy because its total income never crossed the 16 billion SGD mark previously.
Paredes highlighted that DBS is ready to explore the introduction of new crypto-related policies in Hong Kong yet remains keenly aware of any risks posed by digital assets. The bank has expressed its readiness to be one of the first lenders offering services related to cryptocurrency once regulations are established.
DBS Bank launched its institutional crypto exchange in Singapore in 2020 and has been working tirelessly to expand its platform to retail investors. Additionally, the company is utilizing decentralized finance technology for joint projects with Singapore’s central bank.
Also, it has experienced about a 20% uptick in its net profit, reaching a record 8.19 billion Singaporean dollars (SGD), equivalent to $6.7 billion in 2022. In addition, total income increased 16%, exceeding their target of 16 billion SGD ($12.4 billion) for the first time.
DBS Bank’s decision to expand into Hong Kong is coming at the perfect time, as China’s unique administrative region continues to support crypto. Paul Chan, Hong Kong’s financial secretary, declared that there would be a collaboration with fintech startups in 2023. Numerous companies have expressed interest in expanding their operations or going public on local exchanges.
Hong Kong Legislators approved a new law to create licensing requirements for virtual asset service providers by December 2022. This legislation will give crypto exchanges similar recognition as traditional monetary institutions, allowing these services to be more widely accepted and regulated in the financial sector.
