Singapore’s Prominent Family Firm, Whampoa Group, Plans to Establish Cryptocurrency Bank
Whampoa Group, a top multi-family company in Singapore, intends to set up a cryptocurrency bank in Bahrain. The bank will offer round-the-clock payment and settlement services for digital asset businesses.
Whampoa Group Establishes Cryptocurrency Bank in Bahrain
Whampoa Group plans to launch a cryptocurrency bank by the end of the year. The bank will offer various services such as banking, trading, storage, and asset management for digital tokens.
According to a spokesperson from the Bahraini government, the country’s central bank has given Whampoa Group a preliminary approval for their initiative. However, it is important to note that this approval is temporary, and a full license will only be granted once all regulatory requirements are fulfilled.
After experiencing market crashes and bankruptcies, such as the one involving the FTX exchange, many traditional lenders are cautious about partnering with digital asset firms.
In the recent U.S. banking turmoil, crypto-friendly lenders like Signature Bank and Silvergate Capital Corp. faced challenges and experienced disruptions to their twenty-four-hour payment systems.
Last year, Whampoa Group announced its goal to gather $50 million for a hedge fund focused on cryptocurrencies and allocate $100 million for a venture capital fund supporting digital asset ventures.
Previously, the Whampoa Group was associated with ByteDance Ltd., which was part of a consortium led by them that applied for a digital bank license in Singapore, but unfortunately did not succeed in obtaining it.
Countries around the world are taking steps to improve the regulations surrounding digital assets. Some places like Bahrain, Dubai, and Hong Kong are actively seeking to attract investments in the crypto industry. However, the United States is imposing stricter regulations that are impacting the sector negatively.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
