In a recent revelation, several notable exchanges and financial institutions, including DBS Bank, are planning to expand to Hong Kong. The country is trying to attract businesses with its comprehensive regulatory framework.
Sources reveal that Hong Kong is becoming the latest attraction for Web3 businesses as the country adopts a pro-crypto stance. Paul Chan, the Financial Secretary of the country, announced last month that they are committed to becoming a regional crypto hub.
As per a recent article published by a renowned media house, the Singapore-based DBS Bank is envisioning building its crypto business in the territory. Sebastian Paredes, Chief Executive Officer (CEO) at DBS Bank, said in a statement that the bank is applying for a license in the region to offer its customers relevant services.
We are planning to apply for a license in Hong Kong so that the bank can sell digital assets to our Hong Kong customers.
Last year, Singapore’s largest bank enthusiastically welcomed cryptocurrencies and enabled trading services for assets like Bitcoin, Bitcoin Cash, Ethereum, and Ripple.
Justin Sun, CEO of a renowned crypto exchange, also revealed expansion plans to the territory due to the country’s shifting attitude towards cryptocurrencies and digital assets at large. He believed that Hong Kong is “one of the experiment zones for crypto development in China.”
DBS Bank has been one of the biggest proponents of cryptocurrencies in recent years. The bank has made several comments appreciating and acknowledging the potential of digital assets in the years ahead. In August last year, the bank revealed that despite the prevailing bear market, the investors were interested in crypto and made significant purchases.
According to DBS, over twice as many trades were executed on the Ddex in June as in April as investors bought the dip. Over 90% of trades on the Ddex in June 2022 were “Buys,” the company added. Compared to April 2022, the amount of BTC purchased on Ddex in June 2022 was almost four times higher.
In October last year, Daryl Ho, an executive at the DBS Bank, while talking about Bitcoin and its prices, said that if one solely focuses on the price of Bitcoin, a lot of volatility can be seen. He also called Bitcoin to be unique irrespective of the change in prices. This also informs us of the various benefits it brings.
Daryl further pointed out that Bitcoin’s uniqueness is not affected by its price but rather by its utility which allows decentralized value transfers without the need for a central counterparty to clear the trade. Most of the methods by which assets are traded require a centralized body to validate and verify the trade.
With DBS Bank eyeing Honk Kong for its crypto expansion, it seems that the strategy of the territory has finally paid off. In a panel discussion held in October last year, Elizabeth Wong, Director of licensing and head of the fintech unit of Hong Kong’s Securities and Futures Commission (SFC), talked about cryptocurrency and its regulation.
While stressing the differences in the regulatory environment between Hong Kong and mainland China, Wong said it calls for Hong Kong to establish its bill to regulate cryptocurrencies. The Hong Kong government has recently been making efforts to bring back the fintech companies that left the city due to stringent regulations.
In January, Chen Maobo, Hong Kong Financial Secretary, said that the government has been working on multiple pilot cryptocurrency-related projects. One of these projects would issue tokenized green bonds that institutional investors could subscribe to. These tokenized bonds can be counted as another step from a region progressing toward decentralized technology.
