StanChart joins top banks in crypto play with launch of exchange, brokerage service

AT A TIME MA JOR central banks across the globe are acting hawkish on the trade and exchange of cryptocurrencies and other digital assets, a top banking corporation, Standard Chartered, has announced plans to give access to the digital currency to its clients by launching a crypto exchange platform and brokerage service.

The bank stated that SC Ventures, its innovative arm, will be responsible for the platform set up while it collaborates with BC Technology Group to make the plan a reality. This move by the banking group is another evidence Bitcoin and other cryptocurrencies are gradually but successfully penetrating into the mainstream market.

Alex Manson, head of SC Ventures, while commenting on the latest development from the financial institution, revealed that the banking group will be bringing its experience and global network while BC Technology Group will provide the necessary technology used in OSL, the tech firm’s Hong Kong-based digital asset platform.

“The project’s team will be building the exchange platform for corporate and institutional clients in the UK and Europe. The leaders of the venture have been appointed. SC Ventures’ Nick Philpott will be the chief operating officer of the exchange while Usman Ahmad of BC Group will be its chief executive officer. We are constructing the building blocks for a safe and reliable investment infrastructure,” he reiterated while further stating that both firms believe that the virtual asset industry will be adopted immensely by the institutional market as the new platform will connect institutional investors with counterparties trading Bitcoin, Etherum, and other digital currencies.

Meanwhile, it can be said that the announcement by Standard Chartered, though, coming after Noel Quinn, HSBC chief executive officer, stated that his bank will not be launching any crypto-based services which also saw the bank recently updating its policies and barring clients from trading in stocks of companies with ties to crypto investment, it also means that the bank has joined a budding list of top banks around the world that have embraced the virtual asset. Some of the banks include DBS, Morgan Stanley, Citigroup, and Goldman Sachs.

Elsewhere in Russia, Tinkoff, the largest digital bank in the country has begun considering offering cryptocurrency services, but says the stringent policies of the country’s central bank on digital assets remains a constraint to its plans.

Oliver Hughes, Tinkoff’s chief executive officer, while speaking at the Saint Petersburg International Economic Forum, said the bank has a long desire to expose its clients to cryptocurrencies, as a result of the growing demand for digital currency by clients. The CEO, however, revealed that the Russian central bank is still showing concerns about the high volatility and money laundering risks in the industry. As a result, the policy in place now is not favourable for such business. However, he remains optimistic that the environment may become clear for crypto in the future.

However, in February this year, the banking sector regulator in Russia stated that the legal status of cryptocurrency is uncertain in the country after it passed a cryptocurrency law on digital financial assets the previous month. However, while the Russian apex bank has banned using crypto assets as a means of payment, local regulators are looking for ways to initiate a temporary lift on the ban. Meanwhile, the country’s regulatory body’s stance on digital assets does not affect CBDCs, as the country is planning to launch its digital ruble that can be used to make payments in the same way the traditional ruble fiat currency is used.

And in Nigeria, after the Central Bank of Nigeria (CBN) in February placed a ban on the trading and exchange of the digital asset as a way of ensuring the safety of Nigerians, Godwin Emefiele, the apex bank chief, disclosed last month that after a careful investigation, it is now certain as to what percentage of Nigerians are involved in the trading of cryptocurrency as the bank has assured Nigerians that the trading of digital currencies will have a sure and safe haven in the country.

“We have carried out our investigation and we found out that a substantial percentage of our people are getting involved in cryptocurrency which is not the best. Don’t get me wrong, some may be legitimate but most are illegitimate. Under cryptocurrency and Bitcoin, Nigeria comes 2nd while on the global side of the economy, Nigeria comes 27th. We are still conducting our investigation and we will make our data available,” the CBN boss said.

Meanwhile, efforts are still underway between the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) on the framework for the trading and regulation of virtual currencies in Nigeria. However, a recent survey by Statista stated that about 32 percent of Nigerians use the virtual asset as the report further revealed that Nigeria ranked third, in terms of Bitcoin trade volumes, just behind the United States and Russia in 2020.