DBS plans to apply for crypto licence in Hong Kong
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DBS already has a crypto exchange in Singapore for corporate and institutional investors.
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HONG KONG – DBS Group Holdings plans to apply for a licence that allows it to offer crypto trading services to Hong Kong customers as the Chinese territory pushes to become a hub for digital assets.
“We are planning to apply for a licence in Hong Kong so that the bank can sell digital assets to our Hong Kong customers,” said Mr Sebastian Paredes, chief executive of DBS Bank (Hong Kong), at a briefing in Hong Kong on Monday.
The city is pushing to attract digital asset businesses, and its Financial Secretary, Mr Paul Chan, said in January that it remains committed to becoming a regional crypto hub.
In a major policy shift from mainland China, the Hong Kong government is also considering allowing increased access to retail investors to trade in cryptocurrencies and crypto exchange-traded funds.
Mr Paredes said DBS remains sensitive to the risks associated with digital assets but welcomes Hong Kong’s recent policy shift.
When the regulations in Hong Kong are clear and the bank “understands exactly the framework”, DBS will be one of the lenders interested in participating, he said.
DBS launched a crypto exchange in Singapore for corporate and institutional investors in late 2020. In September 2022, it announced plans to expand its DBS Digital Exchange and offer services to more of its wealthy clients in Asia – including private banks, accredited investors and other exchanges – despite the crypto bear market.
DBS has also been working on decentralised finance technology in joint projects with Singapore’s central bank.
Singapore has taken a more cautious approach to the industry, with its leaders stressing that the Republic is open to digital asset innovation, but not to crypto speculation.
In October, the Singapore Government proposed banning retail investors from borrowing
The crypto industry, meanwhile, has seen the collapse of a number of heavyweights, most notably crypto exchange FTX and stablecoin TerraUSD, with cryptocurrencies losing some US$2 trillion (S$2.6 trillion) in value since the height of a massive rally in 2021.
The knock-on effects also saw the failure of Singapore-based entities such as hedge fund Three Arrows Capital and crypto lender Hodlnaut. BLOOMBERG
With additional information from The Straits Times
