DBS Bank & Australia Exchange Awarded Cryptocurrency Licences

What would you do if you won the Squid Game one day and became rich after earning yourself a hefty sum of S$46 million?

Just like the players in the show, different people have different ways of making good use of their wealth.

You may choose to buy a swanky new bungalow to live in, pay your never-ending bills, or just never work again in your life and live in luxury.

And perhaps, since we’re in the digital age that will only continue to advance, you may be one of those who recognise the value of investing in new technology – some that will make you even richer.

Good news, Singapore’s beginning to open up more borders against cryptocurrency.

DBS Vickers And Independent Reserves Awarded Cryptocurrency License

You may know that not many entities here in Singapore actually have a license under the Monetary Authority of Singapore (MAS) to trade and engage in cryptocurrency if you’re an avid investor.

Well, then you may be pleased to hear that companies here are gradually being awarded cryptocurrency licenses, with more expected to roll out in the next few months under the Payment Services Act.

Fomo Pay, a Singaporean fintech firm, was the first lucky one to be awarded the license just last month.

And now, DBS Vickers and Australian exchange firm Independent Reserves have also joined the ranks as a licensed cryptocurrency firm here after receiving approval from MAS.

DBS Vickers is DBS Bank’s brokerage arm and a DBS Digital Exchange (DDEx) member, touting themselves as the world’s only bank-backed full-service digital bourse.

They offer asset tokenisation, digital custody services, and the trading of cryptocurrency.

With the license, they will also be able to support asset managers and companies in the trading of digital payment tokens via DDEx.

Over 400 investors have joined the DDEx bourse that includes members like corporate investors, accredited individuals and family offices as of June, and the company aims to double participant numbers to 1,000, said chairman Ms Eng-Kwok Seat Moey.

They also wish to grow their participant base by 20 to 30% within the next three years as more people begin to adopt digital currency usage, as the firm is rather new and was only established in December 2020.

DDEx’s inaugural token offerings were listed as a S$15 million digital bond in June, with total trading value jumping to more than five times compared to last quarter and hitting S$180 million in the second quarter of 2021.

Singapore’s Crypto-friendly Regulations Attracting More Firms

Currently, the digital asset industry is valued at a whopping US$1.91 trillion (S$2.59 trillion) – vast amounts of money you’d never thought you’d see in your life.

Worldwide regulators are thus being extremely careful about regulations, and they don’t just award licenses to any firm that steps into the industry.

So these companies are considered lucky to have gotten the MAS’ approval, with regulations here mainly aimed at preventing money laundering and terrorist financing.

More than 170 firms have applied for licenses here, but 30 applications were withdrawn after MAS’ liaisons and two more rejected.

Yet, Singapore’s relatively crypto-friendly regulations are still attracting more firms to set up businesses here, with the country well on its way to becoming a cryptocurrency hub, said NUS assistant professor Ben Charoenwong.

“Compared with regulators in China and even the United States, Singapore takes a less stringent approach. We can expect large cryptocurrency exchanges and ventures to enter Singapore,” he said.

The world’s biggest cryptocurrency exchange by trading volume, Binance, has also set up Binance Asia Services here in Singapore.

Last month, however, the MAS had told Binance to stop providing payment services to Singaporeans on their main global website due to the lack of licensing, to which the firm responded well.

Singaporeans on the global platform will be able to redeem their tokens by 26 October and are advised to stop their trades there and withdraw their assets.

One can still trade on Binance.sg, the firm’s local platform, as they are awaiting licensing from MAS.

With more Singaporeans buying cryptocurrency and including them in investment portfolios, it’s safe to say that it may just be the future of investment.

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Featured Image: TK Kurikawa / Shutterstock.com