The largest bank in Singapore, DBS Holdings, is making headlines today in the world of cryptocurrency because it is applying for a license to sell cryptocurrency to customers in Hong Kong.
DBS Group Holdings Ltd. aims to file a licensing application so that it may provide cryptocurrencies to customers in Hong Kong. This comes at a time when Hong Kong is working toward becoming a center for digital assets.
DBS looking to make a comeback after the 2022 bear market
The DBS bank in Singapore runs a digital exchange, and during the course of the past year, it began providing access to its trading platform for cryptocurrencies. The city-state has taken a more stringent approach after major players in the industry, such as the Three Arrows Capital hedge fund and the cryptocurrency lender Hodlnaut, were wiped out by the downturn that occurred in the previous year.
On Monday, Sebastian Paredes, the Chief Executive Officer of the Hong Kong Branch of DBS Bank, said,
“We are planning to submit an application for a license in Hong Kong so that the bank will have the ability to sell digital assets to our customers in Hong Kong,”
Hong Kong is moving in the right direction to become a digital hub.
Last month, Hong Kong’s Financial Secretary Paul Chan stated that the territory is still committed to developing itself into a regional crypto hub. The city is making concerted efforts to attract businesses that are involved in the trading of digital assets. Additionally, he stated at that time that they will be issuing additional crypto licenses and that their standards are on par with international standards.
This occurred in spite of the fact that FTX had failed, which caused the cryptocurrency market to lose billions of dollars. In addition, a number of other companies involved in the cryptocurrency industry filed for bankruptcy. Since then, the SEC has been exerting increased pressure on a variety of businesses, most recently Kraken.
The Anti-Money Laundering and Terrorist Financing System Regulations were updated by the Hong Kong Parliament in December 2022 to include coverage of virtual asset service providers. These regulations were intended to combat money laundering and terrorist financing. This will result in the establishment of a brand-new licensing framework for service providers of virtual assets. The implementation is scheduled to begin on June 1st, 2023. This suggests that virtual exchanges seeking to establish a business in Hong Kong will be subject to stringent anti-money laundering regulations and investor protection rules prior to being granted a license to operate in the city.
