As Hong Kong strives to become a hub for digital assets, Singaporean megabank DBS Group, which is wholly controlled by the Singaporean government, is making plans to extend its cryptocurrency services into Chinese territory.

According to a Bloomberg report dated Feb. 13, DBS Bank intends to submit a license application allowing it to provide cryptocurrency trading services to clients in Hong Kong.

Sebastián Paredes, CEO of DBS Bank Hong Kong, said that the company intends to file a license application in Hong Kong so that the bank can offer digital assets to clients located in Hong Kong.

According to Paredes, DBS is “extremely sensitive” to the dangers posed by digital assets, but the company is enthusiastic about Hong Kong’s recently proposed cryptocurrency-related rules. Once the legislation is fully clarified and DBS “gets the framework right,” the bank will be ready to become one of the first lenders in Hong Kong to provide cryptocurrency services, he said.

A few years ago, DBS Bank made a significant leap into the cryptocurrency business by announcing plans to create an institutional cryptocurrency exchange in Singapore by the end of 2020. In addition, the company has been trying to expand the accessibility of its cryptocurrency platform. for retail investors and has been using decentralized finance technology for collaborative initiatives with the central bank of Singapore.

The announcement comes shortly after DBS revealed that its annual net profit had risen 20% to a record SGD8.19 billion, which is equivalent to $6.7 billion in the US.

Total revenue increased 16% to S$16.5 billion, equivalent to S$12.4 billion, surpassing S$16 billion for the first time ever.

Amid China’s special administrative region continuing to reiterate its pro-crypto stance, DBS Bank has announced its ambition to extend its operations to Hong Kong. Paul Chan, Hong Kong’s finance secretary, made the announcement in January that the Hong Kong government is open to working with crypto and fintech companies in 2023. The official also said that a large number of companies in the sector have indicated their intentions. to expand its operations in Hong Kong or list on local markets.

According to previous reports, the Hong Kong legislature enacted legislation that would result in the establishment of a licensing system for virtual asset service providers in the month of December 2022. The new regulatory framework is being developed with the intention of giving giving cryptocurrency exchanges the same level of market recognition that mainstream financial institutions now have thanks to the existing regulatory system.

Singapore has taken a more rigorous approach to the cryptocurrency business in the wake of major industry failures in 2022. This comes at a time when Hong Kong authorities have gradually relaxed their stance on CRYPTOCURRENCIES In recent months. Following the failure of Singapore’s cryptocurrency hedge fund Three Arrows Capital in September, the Monetary Authority of Singapore introduced legislation in October to ban all types of bitcoin lending.