DBS Bank reports increased Bitcoin trading during global market crash
On Tuesday, DBS Group Holdings announced that Bitcoin trades on its digital exchange more than doubled in June compared to the previous two months.
In contrast to a massive global digital asset market downturn, the multinational bank said its Bitcoin purchases accounted for 90% of crypto trading activities.
Southeast Asia's largest lender reported that the amount of Bitcoin purchased on the members-only exchange was four times higher than in April. DBS, on the other hand, did not provide figures for other months.
"Investors today are instead seeking safe harbors to trade and store their digital assets amid ongoing market volatility," said Lionel Lim, CEO of DBS Digital Exchange.
Since May, when the Terra Luna stablecoin collapse triggered a wave of liquidations, bankruptcies, and layoffs in the industry, crypto prices have plummeted dramatically.
DBS, Singapore's largest bank, has seen significant interest in its digital exchange, which serves institutional investors and family offices.
Singapore is putting its Crypto Hub future at risk
DBS Bank announced plans to expand its cryptocurrency exchange beyond its current institutional client base in February.
While the bank confirmed that it would focus on expanding the scale of its crypto exchange operations in 2022, it hinted that retail investors would not be able to trade digital assets.
The bank postponed plans to offer cryptocurrency trading to retail investors, citing technological challenges and regulatory opposition.
DBS launched the digital exchange in December 2020.
While Singapore describes itself as Asia's natural home for cryptocurrency, it has continued to send conflicting signals about its position toward the digital currency firms it has fostered.
Tharman Shanmugaratnam, chairman of the Monetary Authority of Singapore, indicated in July that Singapore's Central Bank will seriously consider implementing guidelines to limit retail investing and the "use of leverage" in cryptocurrency investment in the city-state.
In June, the MAS's chief fintech officer, Sopnendu Mohanty, promised a "brutal and unrelenting" crackdown on rogue crypto businesses.
Singapore is treading a delicate line between building a crypto hub for innovation and protecting retail investors from the volatility associated with crypto markets.
