Singapore’s DBS Bank opens crypto trading to ‘accredited’ investors
DBS Group Holdings Ltd. has opened up its cryptocurrency trading services on its digital exchange DDEx to an additional 100,000 of its most affluent clientele.
The bank will allow accredited customers with at least $246,000 in investable assets to buy, sell and trade a few cryptocurrencies, including bitcoin. Crypto traders must invest at least $500. The trading facility will be available on the DBS digibank app.
“As a trusted partner helping our clients grow and protect their wealth, we believe in staying ahead of the curve and providing access to the solutions they seek. Expanding access to DDEx is another step in our efforts to provide sophisticated investors who want to dip their toes into cryptocurrencies with a seamless and secure way to do so, says Sim S. Lim, CEO of Consumer Banking and Wealth Management at DBS Bank.
This announcement marks the second major expansion of eligible clientele, following an earlier announcement by the bank about two weeks ago that it would begin offering crypto trading services to 300,000 of its wealthiest Asian clients, including private banks, accredited investors and other exchanges and funds. . Before that, the exchange had around 1,000 qualified traders.
Since being granted approval by the Monetary Authority of Singapore to operate a crypto exchange, DBS Vickers, the brokerage unit of DBS Bank that operates the exchange, has seen a steady increase in trading activity. Transaction volumes doubled between April 2022 and June 2022, with bitcoin volume seeing a fourfold increase.
Bank touts institutional-grade depository infrastructure
Accredited investors can trade bitcoin, bitcoin cash, Ethereum and XRP on DDEx. Customers can view their crypto holdings and the other assets in their portfolio on the digibank platform.
According to DBS bank, clients’ crypto assets will be protected by “institutional grade” custody, which stores the assets in cold storage and is protected by multiple layers of security.
Client funds will be debited directly when performing cryptocurrency transactions, eliminating the need for stablecoins that act as a bridge between the crypto and fiat worlds.
Singapore’s crypto approach: hands-off, retail investors
The Monetary Authority of Singapore has previously warned against retail investors trading cryptocurrencies and, in January 2022, banned crypto ads from the general public. Evidence of this will be seen in the upcoming Singapore Formula 1 Grand Prix, scheduled for September 30, 2022, when Crypto.com will be forced to remove public advertising signage during the race.
“MAS strongly encourages the development of blockchain technology and the innovative application of crypto-tokens in value-added use cases,” MAS Assistant Executive Director (Policy, Payments and Financial Crime) Loo Siew Yee noted at the time. “However, cryptocurrency trading is highly risky and not suitable for the general public.”
The agency has been criticized for positioning Singapore as a destination for fintech and distributed ledger technology, while creating bureaucratic hurdles for companies looking to set up crypto businesses in the country.
It has expressed its support for symbolizing traditional financial assets such as cash, bonds, artwork and real estate.
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