Southeast Asia’s second-largest bank considers launch of crypto exchange
Singapore’s Oversea-Chinese Banking Corporation, or OCBC, is thinking about the possibility to set up its own crypto exchange to satisfy growing demand from clients, CEO Helen Wong told Bloomberg TV in an interview aired on November 19.
Southeast Asia’s second largest bank by assets behind DBS Bank and ahead of United Overseas Bank said that staff was currently studying crypto technology to address customer needs of trading digital assets, and also due to the technology’s potential to boost efficiency for the bank and the financial industry as a whole.
However, OCBC would “not rush into the sector just because of its popularity,” but develop any potential solution in a “safe manner,” Wong said.
DBS Bank already prepares retail crypto services
The bank is also reacting to its competitor DBS Bank which has plans to open its existing digital exchange – which is used by institutional investors – to private and retail banking clients starting from next year.
The financial industry in Singapore is further motivated to step up its crypto efforts by the government’s policy to establish the city-state a global hub for cryptocurrencies and digital assets, causing a new fintech startup scene to flourish.
But still, there are some obstacles on the way for Singapore’s crypto industry. While the Monetary Authority of Singapore (MAS) is generally open to digital assets, it remains conservative at the same time.
“Strong regulation” needed for crypto, central bank says
“We think the best approach is not to clamp down or ban these things,” Ravi Menon, managing director of MAS, which regulates banks and financial firms in the nation, said.
Instead, MAS is putting in place “strong regulation,” so financial services providers that meet its requirements and address the multitude of risks can safely operate in the sector.
With regards to crypto services for individuals, MAS still “frowns on cryptocurrencies or tokens as an investment asset for retail investors,” Menon noted.
Speculative swings, but long-term potential unchanged
Just in early November, MAS warned of “sharp speculative swings” and potential risks for retail investors who put their money in cryptocurrencies. This was in fact ahead of the latest crypto crashes in the second half of November so far which saw, among others, Bitcoin nosediving from its highest-ever price of $69,000 to below $56,000 on November 19.
But as always in the financial world, opinions differ. While some are predicting a prolonged bearish scenario for cryptos, others were quick to find reasons to buy into the crash. But most agree that the long-term thesis for investing in top-tier cryptos like Bitcoin and Ethereum, or even high growth alternatives such as Solana and Cardano, has not changed at all.
Singapore’s Oversea-Chinese Banking Corporation, or OCBC, is thinking about the possibility to set up its own crypto exchange to satisfy growing demand from clients, CEO Helen Wong told Bloomberg TV in an interview aired on November 19. Southeast Asia’s second largest bank by assets behind DBS Bank and ahead of United Overseas Bank said that staff was currently studying crypto technology to address customer needs of trading digital assets, and also due to the technology's potential to boost efficiency for the bank and the financial industry as a whole. However, OCBC would “not rush into the sector just because of...
Singapore’s Oversea-Chinese Banking Corporation, or OCBC, is thinking about the possibility to set up its own crypto exchange to satisfy growing demand from clients, CEO Helen Wong told Bloomberg TV in an interview aired on November 19.
Southeast Asia’s second largest bank by assets behind DBS Bank and ahead of United Overseas Bank said that staff was currently studying crypto technology to address customer needs of trading digital assets, and also due to the technology’s potential to boost efficiency for the bank and the financial industry as a whole.
However, OCBC would “not rush into the sector just because of its popularity,” but develop any potential solution in a “safe manner,” Wong said.
DBS Bank already prepares retail crypto services
The bank is also reacting to its competitor DBS Bank which has plans to open its existing digital exchange – which is used by institutional investors – to private and retail banking clients starting from next year.
The financial industry in Singapore is further motivated to step up its crypto efforts by the government’s policy to establish the city-state a global hub for cryptocurrencies and digital assets, causing a new fintech startup scene to flourish.
But still, there are some obstacles on the way for Singapore’s crypto industry. While the Monetary Authority of Singapore (MAS) is generally open to digital assets, it remains conservative at the same time.
“Strong regulation” needed for crypto, central bank says
“We think the best approach is not to clamp down or ban these things,” Ravi Menon, managing director of MAS, which regulates banks and financial firms in the nation, said.
Instead, MAS is putting in place “strong regulation,” so financial services providers that meet its requirements and address the multitude of risks can safely operate in the sector.
With regards to crypto services for individuals, MAS still “frowns on cryptocurrencies or tokens as an investment asset for retail investors,” Menon noted.
Speculative swings, but long-term potential unchanged
Just in early November, MAS warned of “sharp speculative swings” and potential risks for retail investors who put their money in cryptocurrencies. This was in fact ahead of the latest crypto crashes in the second half of November so far which saw, among others, Bitcoin nosediving from its highest-ever price of $69,000 to below $56,000 on November 19.
But as always in the financial world, opinions differ. While some are predicting a prolonged bearish scenario for cryptos, others were quick to find reasons to buy into the crash. But most agree that the long-term thesis for investing in top-tier cryptos like Bitcoin and Ethereum, or even high growth alternatives such as Solana and Cardano, has not changed at all.
