Singapore-based funding agency Whampoa Group goals to open a digital financial institution in Bahrain to supply cost and settlement companies for crypto corporations.
In a latest assertion, Whampoa Group mentioned it plans to arrange the financial institution, which is able to present banking companies in addition to the buying and selling, custody, and asset administration of digital tokens, by the tip of the yr, in line with a report by Bloomberg.
The federal government of Bahrain reportedly confirmed the information, with a spokesperson saying that Whampoa Group has obtained “an in precept approval” from the nation’s central financial institution for the enterprise.
The “approval is tentative and a full license will solely be granted in any case regulatory necessities have been met,” the nation mentioned.
Whampoa Group’s push into the digital asset sector comes at a time when many lenders are cautious of working with crypto corporations following the latest meltdown that noticed some high-profile crypto firms collapse.
In September final yr, Whampoa Group announced plans to boost funds for a $50 million crypto-related hedge fund and to allocate $100 million in crypto-focused enterprise capital investments.
Whampoa Group is a household workplace with ties to the Lee households, associated to Singapore’s founding prime minister and distinguished enterprise households that co-founded Southeast Asian financial institution OCBC along with different firms, via co-founders Amy Lee and Lee Han Shih.
Bahrain, located between Qatar and the northeastern coast of Saudi Arabia, is an island nation and the smallest Arab state.
In 2018, the nation obtained a $10 billion assist bundle from Gulf neighbors Saudi Arabia, Kuwait, and the United Arab Emirates to assist it keep away from a credit score crunch in a deal tied to fiscal reform.
Bahrain, Dubai, and Hong Kong Vie for Crypto Funding
International locations like Dubai, Bahrain, Singapore, and Hong Kong are striving to grow to be international crypto hubs.
Hong Kong, for one, has been aggressively pursuing its Web3 and blockchain push in a bid to place itself as a hub for digital innovation in Asia and appeal to crypto corporations.
The town has lately adopted a friendlier regulatory regime, which might enable retail buyers within the metropolis to commerce particular “large-cap tokens” on licensed exchanges.
Notably, Hong Kong has already seen important curiosity from crypto corporations.
The town’s Secretary for Monetary Companies and the Treasury, Christian Hui, mentioned final month that more than 80 companies working within the digital asset house had proven curiosity in establishing a presence within the metropolis since October 2022.
In distinction, regulators within the US, particularly the Securities and Trade Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC), have launched an aggressive crackdown on the crypto trade.