DBS Group Sets Its Eyes on Expanding Crypto Offerings to Hong Kong

DBS Group, a state-owned megabank in Singapore, intends to broaden its cryptocurrency offerings to Hong Kong as the region strives to establish itself as a center for digital assets.

According to Bloomberg on February 13th, DBS Bank intends to apply for a permit to provide cryptocurrency trading services to customers in Hong Kong.

According to Sebastian Paredes, the CEO of DBS Bank Hong Kong, they aim to obtain a license in Hong Kong so they can offer the sale of digital assets to their clients in the location.

Paredes stated that DBS is open to new cryptocurrency policies in Hong Kong and is acutely aware of the potential risks associated with digital assets. The bank is eager to be among the first to offer crypto services in Hong Kong once the regulations are fully established and they have a complete understanding of the framework, he added.

A few years ago, DBS Bank made a huge step into the cryptocurrency sector by launching its institutional crypto exchange in Singapore towards the end of 2020. The bank has been working on growing its crypto platform to reach retail investors and has been incorporating decentralized finance technology in collaborative projects with Singapore's central bank.

The announcement regarding the news coincides with DBS reporting that their net profit has increased by 20% to reach a record of 8.19 billion Singaporean dollars (SGD), equivalent to $6.7 billion, in the year 2022. The overall income has also risen by 16% to 16.5 billion SGD ($12.4 billion), surpassing the 16 billion SGD mark for the first time in the company's history.

DBS Bank is seeking to grow its presence in Hong Kong as the region continues to show its support for cryptocurrency. This was highlighted in January when Hong Kong's financial secretary, Paul Chan, announced that the government was open to partnering with cryptocurrency and fintech startups in 2023. Many industry companies have also expressed interest in either expanding their operations in Hong Kong or going public on local exchanges.

It was previously reported that in December 2022, lawmakers in Hong Kong passed a bill to establish a licensing system for virtual asset service providers. The purpose of this new regulation is to give the same level of recognition to cryptocurrency exchanges as is currently given to traditional financial organizations.

Recently, Hong Kong has become more accepting of cryptocurrencies, however, Singapore has taken a stricter stance after several significant failures in the industry in 2022. In October, the Monetary Authority of Singapore suggested prohibiting all types of cryptocurrency loans after the collapse of the Singapore-based crypto hedge fund, Three Arrows Capital.