Singapore's Gulf Bank: Embracing Cryptocurrencies and New Banking Services under the Compliance Framework

Author: Zen, PANews

In recent years, with the rise of cryptocurrencies such as Bitcoin and Ethereum, the global digital asset market has expanded rapidly. As of early April 2025, the total market capitalization of the global cryptocurrency market remains an important pole of the global financial market, even if it falls to $2.63 trillion after a sharp decline.

At the same time, there is a clear gap in traditional banks to meet customer needs - according to Bitpanda's latest survey, less than 20% of European banks offer digital asset services, while more than 40% of business investors already hold crypto assets. In addition, Michelle Neal, CEO of Fnality, pointed out that many major international banks are accelerating their embrace of blockchain technology to achieve round-the-clock real-time settlement and cost efficiency improvements.

In this context, as the first licensed bank in the MENA region to offer fully remote account opening services, Singapore Gulf Bank (SGB) is trying to break this situation. It aims to provide new banking solutions for crypto users and digital nomads who have been overlooked by traditional financial systems through crypto-friendly services and strict regulatory compliance.

Establishment and Background of Gulf Bank in Singapore

The Singapore Gulf Bank was established at the end of 2023. This digital bank set up in the Gulf country of Bahrain was initiated by the Whampoa Group from Singapore. The Whampoa Group is an investment company active in the technology sector, founded by Lee Ruoying, the niece of Singapore's founding Prime Minister Lee Kuan Yew, and Li Hansi, the grandson of the founder of Oversea-Chinese Banking Corporation.

After officially being established and obtaining a banking license issued by the Central Bank of Bahrain, the bank soon received investment from Bahrain Mumtalakat, the sovereign wealth fund of the Kingdom of Bahrain, and elevated the banking project to a national strategic development project, becoming a new benchmark for financial technology service innovation in Bahrain and the Gulf region.

On November 4, 2024, Singapore's Gulf Bank, together with the Central Bank of Bahrain and the Bahrain Economic Development Commission, announced the commencement of corporate banking services for the global digital economy, becoming the first licensed bank in Bahrain to offer full cryptocurrency-compatible banking services. In addition to its regular corporate banking services, the bank will offer a real-time settlement network, digital asset custody, and intuitive and efficient trading solutions. As its chief development officer and executive vice president, Tsai Yiler, said, digital companies such as Web3 will form the main customer base of the bank's services.

! Gulf Bank Singapore: Embracing Cryptocurrencies and New Banking Services under the Compliance Framework SGB announced the launch of corporate banking services at the 2nd Gulf Gateway Investment Forum. Following a strong market response to its corporate banking services, Gulf Bank of Singapore officially launched its personal banking services in April this year by expanding its services to individual customers. As the first and only regulated bank in the MENA region to offer fully remote digital account opening services to investors, innovators and institutions around the world, SGB aims to provide millions of individuals around the world with remote account opening and banking solutions that integrate traditional and digital assets. Currently, personal banking services are available on an invite-to-enrollment basis.

Break the limitations of traditional banking

Under the full supervision of the Central Bank of Bahrain, Singapore's Gulf Bank offers a global remote account opening service, allowing global investors, innovators and small businesses to open accounts without having to physically visit Bahrain and leverage its settlement network for cross-border payments and settlements. This not only greatly lowers the threshold for opening an account, but also opens up a new situation for those users who are unable to enjoy high-quality financial services due to geographical restrictions.

In the face of global Web3 users, Singapore's Gulf Bank strives to break through the limitations of traditional banks in the field of digital asset services and create the first crypto-friendly bank account. The account not only allows customers to deposit wages in fiat or cryptocurrency, but also has multiple functions such as payment, transfer and investment. Through deep integration with top licensed trading platforms and exchanges, SGB is able to achieve instant and secure seamless conversion between fiat and cryptocurrency, greatly improving the efficiency and convenience of capital flow.

In addition, in terms of cross-border payment and foreign exchange needs, Singapore's Gulf Bank will combine the multiple advantages of wire transfer, own bank card and cryptocurrency payment channels to provide low-cost and efficient international remittance solutions for global users. Whether it's studying abroad, business trips, or day-to-day cross-border transactions, SGB can provide flexible and convenient financial services to effectively cope with the complexities faced by traditional banks in cross-border payments and settlements.

With comprehensive banking services, Singapore Gulf Bank also opens up diversified investment channels for its clients. These channels not only cover high-yield savings and fixed deposit accounts (with annual interest rates of up to 4%), but also include products with unique investment opportunities in Asia and the Middle East and North Africa, providing clients with a more diversified asset allocation option.

Through its own settlement network, Singapore Gulf Bank has achieved 24/7 real-time payment services. This is not only applicable for quick transfers between individual users but also meets the demand for high-frequency fund flows between institutions. Its fee-free instant transfer service greatly enhances the overall efficiency of financial transactions and improves user experience.

Practical Exploration of Building a "New Banking" Model

"The company has no intention of competing with traditional banks, but hopes to be number one in areas where competition is possible." Last year, Li Youqiang, chairman of Singapore's Gulf Bank, stated in an exclusive interview with Lianhe Zaobao that he is firmly optimistic about the development prospects of digital assets and emphasized that the focus will be on customer groups that have not been adequately served by traditional banks. SGB aims for differentiated competition and crypto-friendly banking services, with the goal of building an ecosystem that encompasses transactions, transfers, payments, and storage between digital assets and cash.

In building this new banking model, Singapore Gulf Bank fully relies on advanced digital technology and AI technology. By constructing an AI-driven risk control system, the bank is able to achieve real-time monitoring of customer behavior, reducing fraud risk. At the same time, through automated identity verification processes, Singapore Gulf Bank has greatly improved account opening efficiency and ensured strict compliance management across all services. In this way, SGB not only achieves seamless integration of traditional banking services and digital asset services but also provides a unified and convenient banking service entry point for global users.

Salman, the Minister of Finance and National Economy of Bahrain (left), and Li Youqiang, the Chairman of Singapore Gulf Bank (right) Li Youqiang emphasized in an interview with Lianhe Zaobao that Singapore's Gulf Bank is not a cryptocurrency exchange, and he does not view cryptocurrencies as speculative assets but rather as a payment channel that can facilitate cross-border trade. Based on this concept, Gulf Bank of Singapore positions itself clearly towards native cryptocurrency users and clients interested in cryptocurrencies, while ensuring traditional financial needs are met, focusing on creating a comprehensive ecosystem for digital asset services.

With the continuous expansion of the global digital asset market, countries are increasingly tightening regulations on cryptocurrency trading. Singapore's Gulf Bank adheres to the principles of legal and compliant operations in its new banking model, particularly in relation to cryptocurrency business. Under the comprehensive supervision of the Central Bank of Bahrain, SGB strictly follows international financial and regional compliance standards throughout the processes of account opening, trading, and asset management, ensuring that all aspects involving fiat and cryptocurrency transactions meet requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC).

Can innovative models lead the new trends in digital banking?

"Coming from a traditional banking background, I see a lot of disruptive change happening. Technology has allowed us to do many things that were not possible before. Over the past 40 years in the banking industry, Lee has served as Chairman and Chief Executive Officer of DBS Vickers and Vice Chairman of J.P. Morgan Asia Pacific. Today, he sees "developing Singapore's Gulf Bank into the leading or largest digital bank in the industry" as the ultimate goal of his career, a long way to go for the fledgling bank.

! Gulf Bank Singapore: Embracing Cryptocurrencies and New Banking Services under the Compliance Framework Bahrain's Crown Prince Salman (right) meets with the Chairman of Gulf Bank of Singapore, Li Youqiang (left) Currently, with core competitive advantages such as crypto-friendliness, cross-border payments, and strict compliance, Singapore's Gulf Bank is gradually making its mark as an important new force in the field of new banking. In the face of challenges from technology, regulation, and the market, the bank provides secure, convenient, and diversified financial solutions for global users through a differentiated strategy and refined management. Its innovative model offers a brand new financial choice for individual users worldwide and will continue to be tested by the market and time.