According to a new report from the Financial Times, CEO of DBS, the largest bank in Singapore with $489 billion in assets, Piyush Gupta said that the recent decline in cryptocurrencies shows the need for highly regulated financial institutions.
DBS first launched its cryptocurrency exchange for institutional investors and was accredited in late 2020. The exchange offers trading services for Bitcoin (BTC), Ethereum (ETH), XRP, and Bitcoin Cash (BCH). Earlier this year, Gupta announced plans to further expand its cryptocurrency offerings.
Currently, Gupta said financially regulated institutions can help cryptocurrencies reach closer to the public.
Nizam Ismail, the founder of digital space consultancy Ethikom Consultancy, said the volatility of cryptocurrencies makes it difficult for most people to fully appreciate the dangers of investing until it’s too late.
“In fact, cryptocurrencies are very risky and basically, it has to go down so that people understand the risk…”
Gupta said his customers are likely to be damaged by a cryptocurrency price drop and this is the main concern.
“On the one hand, we want to be a global cryptocurrency hub. On the other hand, we are also very worried about our clients being damaged by this speculative asset class. “
