DBS Group Limited has announced plans to increase the scope of its offerings in Hong Kong. The Bank Bank intends to seek a license to provide Hong Kong customers with cryptocurrency trading services, according to a Monday story from The Straits Times. DBS, which has its headquarters and is publicly traded in Singapore, is the biggest company in Southeast Asia and operates in 18 markets. Read on to know more in detail to have an overall Bitcoin News Trader !
For BankBank to offer digital information to our Hong Kong customers, we want to apply for a license in Hong Kong.
The CEO said that once the rules governing digital currencies in Hong Kong become clear and the bank “understands the framework fully,” DBS will be one of the institutions interested in participating. Although conscious of the dangers posed by digital assets, he pointed out that DBS favors Hong Kong’s recent regulation change.
Hong Kong is actively attempting to draw enterprises involved in digital assets. The city’s commitment to developing into a crypto hub was reiterated in January by Finance Secretary Paul Chan Mo-po. Unlike China, which opposes cryptocurrency, Hong Kong is contemplating allowing more ordinary investors to trade cryptocurrency and exchange-traded funds (ETFs).
In late 2020, DBS opened a full-service crypto exchange in Singapore for institutional and corporate investors. The BankBank introduced a cryptographic trust service after noticing an increase in trading activity, followed by its initial security token issue. DBS cited “increasing demand” to keep developing its cryptocurrency business.
The BankBank started a self-directed cryptocurrency trading service after receiving a license from the Monetary Regulation Authority of Singapore (MAS) in October 2021. DBS also joined the mass effect universe in September of last year.
DBS Bank is still entering the cryptocurrency market.
After introducing cryptocurrency trading services in the country last year, DBS Bank is continuing its foray into the sector. This functionality, which allows accredited investors to trade cryptocurrency on its DBS Digital Marketplace (DDEx) platform, was previously discovered by DBS Bank.
With the catastrophic failure of crypto businesses like FTX and Three Arrows Capital, Singapore tightened the noose on the industry’s laws last year (3AC). However, it is still seen as one country that welcomes cryptocurrency.
DBS Bank is expanding the cryptocurrency platform for ordinary investors through its affiliation with Singapore’s central BankBank and decentralized finance technologies. After DBS reported that its operating earnings increased significantly by 20% in 2022, BankBank announced this.
The revenue increased by 16% to $12.5 billion (SGD) or 16.5 billion Singaporean dollars (SGD). Considering Singapore’s total annual income had never surpassed 16 billion SGD, this was a significant economic turning point.
Hong Kong Is Considering Becoming Into A Crypto Hub
According to Hong Kong’s Financial Secretary Paul Chan, the city is poised to emerge as the next crypto powerhouse. Hong Kong has thrown wide its doors to newcomers to the sector.
In addition, the Hong Kong government is working to create legislation consistent with global norms. With the collapse of FTX, most countries have begun to reconsider its regulations because of the industry-wide loss of billions of dollars and the loss of billions of dollars in client assets.
Hong Kong has emphasized regulating the cryptocurrency sector to permit these companies’ expansion. In contrast, the Hong Kong legislature recently implemented general pro-laundering regulations and made terrorist funding systems a priority.
Digital asset flows at DBS Singapore increased by 70%
The DBS CEO feels that the market for authorized and savvy investors, the only group to whom DBS Global Exchange is now available, is one of tens of thousands instead of millions.
Yet he said that volumes had increased by about 70%, greater for Bitcoin (80%) than Ethereum (60%). The monetary worth, however, is flat due to the collapse in cryptocurrency pricing. While revenues are minimal, they will increase by 60% to 70% this year, the CEO noted.
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Conclusion :
A new rule was adopted by Hong Kong’s legislators that would compel virtual asset service companies to get licenses by December 2022. This law will grant cryptocurrency exchanges the same legitimacy as conventional financial institutions, enabling greater acceptance and regulation of these services in the financial industry.
Hong Kong has recently opened up further to the cryptocurrency sector, whereas Singapore adopted a much tougher stance in light of something like the collapse of the sector in 2022. Following Three Arrows Capital’s bankruptcy, Singapore’s Monetary Authority suggested banning all forms of bitcoin loans in October.