Hong Kong Supports Crypto Currency With DBS

Hong Kong, a special administrative region of China, has recently announced its decision to shift its policy on cryptocurrency, despite China’s stance on the matter. This decision comes as Hong Kong aims to become a leading global fintech hub, with a strong focus on cryptocurrency.

Paul Chan, Hong Kong’s Financial Secretary, stated that the government will open collaborations with fintech firms centering around cryptocurrency, as the city is committed to creating a crypto hub. Chan believes that by embracing digital assets, Hong Kong can attract more international fintech companies and enhance its competitiveness in the global market.

DBS, the largest bank in Southeast Asia with 18 markets and headquartered in Singapore, has also announced its plans to venture into cryptocurrency in Hong Kong. The bank’s CEO, Sebastian Paredes, has said that DBS is planning to apply for a license to sell digital assets, such as cryptocurrencies, in Hong Kong. However, the bank will only proceed with its plans once all the necessary regulations and policies are laid out and clear to DBS Holdings.

While DBS is aware of the risks linked to digital assets, it is still willing to reaffirm its pro-crypto stand in Hong Kong. This is similar to how DBS offered a full-service bitcoin exchange in Singapore back in 2020, after obtaining a license from the Monetary Authority of Singapore. DBS’s move into cryptocurrency is part of its larger plan to grow its wealth management business and attract younger, tech-savvy clients.

The announcement of DBS’s plans to venture into cryptocurrency in Hong Kong has been met with mixed reactions. Some see it as a positive move that will help Hong Kong become a global fintech hub, while others are concerned about the potential risks associated with digital assets.

Despite these concerns, it is clear that Hong Kong is committed to becoming a major player in the cryptocurrency space. With the government’s support and major financial institutions like DBS venturing into cryptocurrency and Hong Kong’s recent shift in policy on cryptocurrency, a significant step towards creating a thriving fintech industry in the city will be achieved.