According to the CEO of DBS Bank, Singapore’s largest bank, the company is trying to extend its bitcoin exchange beyond its present institutional client base.
During DBS Bank’s Q4 2021 results call on Monday, CEO Piyush Gupta discussed the bank’s cryptocurrency business, noting that the company will focus on steps to significantly develop its crypto exchange activities in 2022.
Gupta was questioned if DBS Bank has a plan in place to bring digital asset trading to regular investors during the call. While the CEO did not give a straight answer, however, he did say that DBS Bank had started working on expanding its present investor base.
He implied that DBS Bank would be unable to proceed with retail support for its crypto exchange until that work was completed, with associated advancements expected to be completed by the end of 2022. “I think you’re looking more like the end of the year before we can take something to market,” Gupta stated.
Can this help Singapore’s retail investors?
Singapore, although being a key financial center in Asia, has remained leery about accepting cryptocurrencies for its citizens. On the one hand, the city-state encourages cryptocurrency development and has created a regulatory framework for the industry. On the other hand, it does not want speculation to damage its residents, is wary of illegal risks, and allows only the most qualified applicants.
In January 2020, Singapore’s Payment Services Act came into effect, providing a framework for regulating everything from crypto trading to the usage of tokens for payments. To crypto firms that complete the application process, the Monetary Authority of Singapore awards so-called digital payment token permits.
In recent years, DBS Bank has made a significant investment in the cryptocurrency market, launching its institutional-grade crypto exchange in December 2020. The exchange’s supported digital asset offerings have been steadily expanding, with a crypto trust solution launching in May 2021.
The Monetary Authority of Singapore awarded DBS Vickers, the bank’s brokerage arm, a license to conduct digital payment token services as a payment institution in August. If all goes according to plan, we should see a change in the behavior of retail investors based in Singapore. The country is home to a large number of crypto proponents, on top of being one of the largest financial hubs of the world.
As cryptocurrencies see more and more adoption, we may see a change in Singapore’s approach to the crypto industry. With Russia recently opening up to crypto, we are only in the beginning stages of a possible worldwide adoption phase.