DBS Declines to Offer Crypto Services to Retail Customers as Regulation Stiffens
Nicholas Otieno Apr 30, 2022 09:51
Since regulators consider crypto coins to be ill-suited for retail consumers, DBS bank said that it will not offer such products to retail-banking clients any time soon.
Piyush Gupta, the Chief Executive Officer of DBS Bank Limited, a multinational bank headquartered in Singapore, announced on Friday that the global bank will not provide cryptocurrency trading for retail clients this year.
While speaking during the bank’s results briefing on Friday, the executive cited that regulators are not comfortable with cryptocurrency trading for retail investors. However, Gupta admitted that he would have loved to see the service launched this year, but the process is taking a bit longer than expected. Currently, DBS is providing crypto trading only for institutional clients and accredited investors.
Gupta, therefore, mentioned that DBS will examine whether it will be able to expand its cryptocurrency trading to retail investors in 2023 at the earliest.
The Monetary Authority of Singapore (MAS), the Central Bank and financial regulatory authority of Singapore, is against trading cryptocurrencies for the general public (retail consumers). The regulator maintains that the trading of cryptos is highly risky and not suitable for the general public.
Recently, the Singapore Central Bank noticed that some crypto service providers have been actively promoting their services through online and physical advertisements and in public areas, which encourage consumers to trade digital coins on impulse, without fully understanding the risks. As a result, in January, the regulator imposed a ban on crypto marketing activities that target the general public.
Making Digital Assets Accessible
DBS has been offering crypto services to some clients for quite some time. In December 2020, the bank set up a digital asset exchange that enables institutional investors and accredited investors to trade digital assets that include cryptos and asset tokenization.
The launch followed the approval of the Central Bank to recognize DBS Digital Exchange as a recognized market operator. Since DBS launched its digital asset exchange platform, it has witnessed rapid growth in its crypto business.
In February, the bank announced plans to launch crypto trading for retail investors this year.
Image source: Shutterstock
