DBS Plans to Apply for Crypto License in Hong Kong

DBS Plans to Apply for Crypto License in Hong Kong

by February 14, 2023

DBS Group Holdings plans to apply for a license to that will allow it to expand its crypto trading services to its Hong Kong customers in the future.

Sebastian Paredes

Sebastian Paredes

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

said Sebastian Paredes, CEO of DBS Bank Hong Kong, according to Bloomberg.

The announcement is timely as Hong Kong has been vocal about its ambitions to be a virtual assets hub again recently with the government seeking feedback on enabling crypto trading for retail investors as well as crypto exchange-traded funds.

Once the Hong Kong government is able to firm up regulations in the crypto space and the bank has a greater understanding of the framework, Parades said that DBS will be interested in being a part of it.

He added that DBS will still, however, proceed cautiously as it remains mindful of the risks associated with digital assets.

The Singapore-headquartered bank had launched the DBS Digital Exchange (DDEx) in December 2020 with Singapore Exchange holding a 10% stake in it.

The exchange enables corporate and institutional investors, accredited individuals, and family offices to access an integrated suite of solutions across the digital asset value chain.

While DBS Bank CEO Piyush Gupta had revealed that the bank had started the ball rolling by working on offering digital asset trading to retail investors, the bank has since taken a step back citing regulatory concerns.

The Monetary Authority of Singapore has issued numerous advisories warning retail investors against crypto trading given its volatile nature.

The Singaporean regulator is also contemplating adding frictions on retail access to cryptocurrencies.