One of the largest financial institutions in Southeast Asia, DBS Bank is planning to expand its crypto trading services to Hong Kong as soon as it gets the necessary license
As reported by Bloomberg on Feb. 13, Singaporean DBS Group, which mainly operates through DBS Bank, plans to apply for a license to offer crypto trading services to its Hong Kong customers.
Last December, Hong Kong regulators introduced an upcoming licensing regime for virtual asset service providers, including strict AML and money laundering guidelines. The new amendment, effective from June 1, 2023, will subject crypto exchanges and related fintech entities to the same legislation as followed by traditional financial institutions.
Moreover, the new rules would bring cryptocurrencies and other virtual assets under the control of the Securities and Futures Commission (SFC) as a new asset class.
The Singaporean institution welcomes new crypto-related policies in Hong Kong, aimed at becoming a digital asset hub. Therefore, the leading Asian bank rushes to become one of the first lenders offering crypto-related services in Hong Kong.
As we have previously reported, over 90% of family offices and high-net-worth individuals (HNWI) in Hong Kong and Singapore are either interested in investing in digital assets or have already done so.
At the same time, DBS is well-aware and careful about all the risks associated with digital assets. Thus, it’s going to fully understand the new legal framework first and obtain all the necessary licenses.
The Bank has significant experience in dealing with crypto assets. It launched an institutional crypto exchange in Singapore in 2020. Since then, DBS has been working to expand its crypto platform to retail investors and took part in joint DeFi-related projects with the Monetary Authority of Singapore (MAS).