DBS Bank Seeks Licensing For Crypto Customers In Hong Kong

Crypto News: As Hong Kong strives to become a center for digital assets, DBS Group Holdings Ltd. intends to submit an application for a license that would enable it to provide cryptocurrency to consumers in Hong Kong.

In Singapore, DBS bank operates a digital exchange, and last year it opened up access to its cryptocurrency trading platform. After sector heavyweights like the Three Arrows Capital hedge fund and cryptocurrency lender Hodlnaut were decimated by last year’s downturn, the city-state has adopted a stricter stance.

Sebastian Paredes, CEO of the Hong Kong Branch, of DBS Bank, said on Monday,

“We are planning to apply for a license in Hong Kong so that the bank could sell digital assets to our Hong Kong customers.”

Hong Kong on the path to becoming a digital hub

Financial Secretary Paul Chan stated last month that Hong Kong is still dedicated to becoming a regional crypto hub. The city is actively attempting to draw enterprises that deal in digital assets. He also said then, that they will be issuing more crypto licenses and that their norms match the international standards. This came despite the collapse of FTX which swept away billions of dollars from the crypto market. Additionally, several other crypto-related firms filed for bankruptcy. Since then the SEC has been cracking down on various firms, recently Kraken.

Also read: Paxos Ordered To Stop Creating Binance’s BUSD, Crypto Market Crash Imminent?

The amendment of Hong Kong’s Crypto Rules

In December 2022, the Hong Kong parliament passed new regulations for Anti-Money Laundering and terrorist financing system to cover virtual asset service providers. It will create a new licensing system for service providers of virtual assets. It is scheduled to take effect on June 1, 2023. This implies that before receiving a license to operate, virtual exchanges seeking to establish a business in Hong Kong will be subject to stringent AML regulations and investor protection rules.

Also read: Binance CEO “CZ” Breaks Silence On US SEC’s Crackdown On BUSD