DBS Digital Exchange CEO says investors prefer regulated platforms over yield

Lionel Lim, CEO of DBS Bank’s Digital Exchange (DDEx) in Singapore, said investors are looking for regulated platforms rather than looking for options that offer the highest yields, according to Forkast News. increase.

the rim is interview Forkast News reporters cited the devastating events of 2022 and how they changed the behavior of safe-seeking investors. Lim said:

Blind tracking of yields is over. Investors now want safe ports and prefer a trusted and regulated platform to access the market.

DDEx has recorded an 80% increase in Bitcoin (BTC) trading volume and a doubling of registered users in 2022. Referring to these figures, Lim said, “DBS has benefited from this extensive safety flight.”

According to Lim, DDEx checks the purity of every coin that goes into custody and complies with all the anti-money laundering (AML) and know your customer (KYC) regulations mandated by banks.

Citing the negative impact of the bear market events in 2022, Lim believes 2023 will be the year the digital asset industry rebuilds trust and confidence. argued that the center would play an important role in this process. As such, DDEx seeks to expand the services it offers to its customers, while prioritizing regulatory compliance and safety product diversity.

Separation

Lim also pointed out that DDEX does not control client assets. Instead, all assets will be stored in a cold wallet owned by DBS Bank, which makes it even more secure, Lim said.

Further commenting on the topic of isolation, Lim said:

Centralized exchanges will continue to be popular due to their relative ease of use, but we expect to see changes in the way centralized exchanges operate and a move to adopt bank-level infrastructure and risk management. .

One of the easy and obvious outcomes to achieve is the clear separation of custody and trading assets.

On February 15, US Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed a similar opinion regarding the separation. Gensler proposed extending federal custody requirements to include virtual currencies. This will require cryptocurrency exchanges to store customer assets separately from the exchange.