DBS Bank Seeks Licensing for Crypto Customers in Hong Kong
Crypto News: DBS Group Holdings Ltd. is applying for a license to offer cryptocurrency to Hong Kong consumers.
DBS bank in Singapore operates a digital currency exchange. Last year, it opened its cryptocurrency trading platform to the public. The city-state took a more strict stance after sector heavyweights such as the Three Arrows Capital hedge funds and the cryptocurrency lender Hodlnaut were decimated last year.
Sebastian Paredes, the CEO of DBS Bank’s Hong Kong Branch, stated Monday.
“We plan to apply for a Hong Kong license so that the bank can sell digital assets to our Hong Kong clients.”
Hong Kong is on the road to becoming a digital hub
Paul Chan, the Financial Secretary, stated last month that Hong Kong remains committed to becoming a regional cryptocurrency hub. The city is actively trying to attract enterprises that deal with digital assets. He also stated that they would be issuing more crypto licences and that their norms will match international standards. This was despite the collapse in FTX, which wiped out billions of dollars from crypto markets. Several other crypto-related companies filed for bankruptcy. Since then, the SEC has been clamping down on various companies, most recently Kraken.
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The amendment to Hong Kong’s Crypto Rules
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The Hong Kong parliament passed new regulations in December 2022 for Anti-Money Laundering, terrorist financing system and virtual asset service providers. It will establish a new licensing system to license service providers of virtual assets. It is expected to go into effect on June 1, 2023. This means that virtual exchanges wishing to open a business in Hong Kong must comply with strict AML regulations and investor protection rules before they can receive a license to operate.
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