DBS, Singapore’s largest consumer bank, has announced its plans to expand its cryptocurrency and digital assets business despite the crypto bear market, as reported by the Financial Times.
In the media interview, Piyush Gupta, chief executive of DBS since 2009, said that the crypto market downturn proved that established and regulated financial institutions, rather than just start-ups, should be offering products such as digital asset trading options for retail investors.
According to Gupta, the bank has less than 1,000 members on its exchange, but plans to offer the service to 300,000 of its wealthy clients across Asia, including private banks, accredited investors, other exchanges, and funds through its DBS mobile banking app.
Willing to Offer Better Technology to Support Crypto Ambitions
DBS received a cryptocurrency licence from the Monetary Authority of Singapore through its brokerage arm last year, allowing its institutional and wealthy clients to access its DBS Digital Exchange by invitation.
DBS is expected to support Singapore’s push towards developing cutting-edge financial technology. The bank is willing to help customers with the app, thereby making using its services less clunky, and quicker to use for clients, in addition to allowing DBS to offer it to a wider range of customers.
“People look to us to be a pioneer in the space and to continue to push boundaries,” said Gupta.
Commenting on Singapore’s push to become a crypto hub, Gupta remarked: “On the one hand, we want to be a global crypto hub. On the other hand, we’re also very worried about our domestic population getting burned with this speculative asset class.”
Recently, the Monetary Authority of Singapore (MAS) has issued strong warnings against retail investment into cryptocurrencies, and has been taking increasingly stronger measures to restrict retail access to the asset class.
On the Flipside
- DBS may struggle to establish itself in Singapore’s crypto sphere, as the country continues to grapple with its messaging despite its desire to be a crypto hub. The Singapore central bank is contemplating adding restrictions to retail access to cryptocurrencies, which may come in the form of customer suitability tests, and withheld use of leverage and credit facilities for cryptocurrency trading.
Why You Should Care
2022 has seen a number of Singapore-based crypto companies struggle in a year that has seen the collapse of several high-profile crypto groups. Recently, Hodlnaut, a Singapore-based platform for crypto lending, was granted judicial management by the Singapore High Court, allowing them some breathing room.
More on Singapore’s relationship with crypto:
Singapore Contemplates Making Crypto Trading Difficult for Retail Investors
Singapore High Court Grants Judicial Management To Hodlnaut