Retail customer interest in cryptos has been on the rise, driven by the talk of Bitcoin (BTC) hitting $100,000 this year. Increased regulatory scrutiny and a shift in FED monetary policy coupled with rising geopolitical risk have weighed on the crypto market since November highs, however. In spite of the increase in regulatory scrutiny, some jurisdictions remain crypto friendly within appropriate regulatory boundaries.
Last week, news hit the wires of a whopping $1.48bn in investments reaching the Singapore crypto sector. Reportedly, crypto-related investments increased from $110m in 2020 to $1.48bn in 2021. Government efforts to lure crypto investment led to a sharp increase in investor interest that has placed Singapore as one of the more crypto friendly jurisdictions.
The surge in investment came in spite of the Singapore government banning crypto advertising in public.
Singapore has seen a number of crypto players set up in the Republic. Not all have been successful in meeting the requirements of the Monetary Authority of Singapore (MAS). Last year, Binance (BNB) withdrew its Singapore application, reportedly for falling short of MAS KYC and AML requirements.
Singapore’s leading banks will likely have plenty of success in meeting retail trading demand. Existing relationships with the MAS and resources to build the necessary trading infrastructure are key for players looking to enter the space.
Singapore’s DBS Targets Crypto Retail Trading
During today’s earnings call, DBS Bank CEO announced plans to expand its digital assets trading platform to retail investors. The bank had rolled out institutional digital asset trading desk back in early 2021.
Bank CEO Piyush Gupta stated that the bank has “lots of work to do with suitability and anti-fraud”.
Singapore government investment fund, Temasek Holdings, is DBS Group’s largest shareholder, with a shareholding of 29% as at 31/03/2021.