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A Need Creates a Golden Opportunity: Connecting Crypto to Gold

By Joshua Rotbart, Managing Partner, J. Rotbart & Co.

Published on March 28, 2019

Joshua Rotbart is the Founder and Managing Partner of J. Rotbart & Co. , an international bullion house with offices in Hong Kong, Singapore and Manila which provides solutions for high-net worth individuals, family offices and private banks wishing to procure, transport and store physical precious metals and other tangible assets worldwide. Joshua began his career in the precious metals industry in 2010 when he joined the Malca-Amit logistics group. In 2016 Joshua established J. Rotbart & Co. In his career Joshua helped hundreds of clients handle about US$1 billion worth of goods.

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J. Rotbart & Co. recently celebrated its third anniversary. Although we are well known in the precious metals industry, few of our peers are aware of our sister company, JR-Crypto, which assists cryptocurrency investors by offering them a secure way to move funds from the volatile and virtual market of cryptos to the stable and safe world of physical gold. JR-Crypto offers a robust ecosystem that allows a two-way market from gold to crypto and vice versa, without compromising on strict anti-money-laundering (AML) and know-your-client (KYC) policies. In addition, JR-Crypto offers cold storage services in over ten locations globally.

In 2016, we encountered an unusual client request: “I trust you when it comes to helping me buy and store precious metals. Would you also be able to source for me a virtual coin named Bitcoin?” We looked into this “new” asset class and sourced 1BTC for our client through a Singapore-based peer-to-peer platform. After completing this transaction, we received similar requests with increasing volumes. In the crypto heyday of 2017, several of our bullion clients asked us to liquidate a part of their physical precious metals holdings and transfer them bitcoin in return. We recognised this opportunity and looked into the matter more seriously, which is how we established JR-Crypto.

There is an even greater need for crypto investors to have a way to easily and securely move from these volatile new assets to the stability and safety of physical gold.

There are several similarities between cryptocurrencies (mostly bitcoin) and gold. Both can be viewed as global decentralised currencies, as they are traded globally and are not issued by any central bank. However, cryptocurrencies are a new uncharted asset with a low public acceptance rate, lack of regulatory framework, and extremely volatile prices. Traditional investors use gold as a “safe haven” but considering the unrealistic appreciation in the price of cryptos, it was clear to us that there is an even greater need for crypto investors to have a way to easily and securely move from these volatile new assets to the stability and safety of physical gold.

Although some of our industry peers already accept bitcoin as means of payment, the fact that we serve mostly high-net worth individuals and investment firms mean that the transaction values we deal with are usually higher, which entails additional legal and logistical issues. The challenges we have encountered include:

  • Finding the right crypto trading partners. As the crypto industry matured, a few key players emerged, some of them backed by big financial firms. JR-Crypto only trades with the most innovative crypto OTC companies via advanced trading systems.
  • Compliance and KYC procedures. Due to the anonymous nature of holding cryptocurrencies, this was our biggest concern. We assigned a Singapore-based law firm to design strict, up-to-date KYC and compliance SOPs to ensure clients are screened properly. We also use innovative tech solutions to conduct enhanced due diligence on the coins, trace their origin and make sure they are not derived from illicit or illegal activities.
  • Banking. Opening a bank account was perhaps the most difficult task we encountered. Although cryptos have become more popular, many industries still refrain from embracing it, especially the banking sector. Many crypto enthusiasts claim that the banking industry is the one that will suffer the most from the mass adoption of digital coins, as this will eliminate the need for a third-party intermediary.

Due to the above, and the fact that cryptocurrencies are a new asset class that requires additional KYC and AML procedures, the majority of banks have completely banned new accounts for crypto-related companies, as well as receiving remittances that originated from any crypto-related activity. The few banks that are tolerant of crypto-related activities shunned us completely as we are also involved in precious metals trading. Eventually, we found a solution. JR-Crypto now enjoys solid banking relationships.

Challenges still exist, of course. The general ecosystem is fragile, and all the required components, such as banking and professional insurance coverage, are not accessible to everyone. That said, the success of JR-Crypto proves that solutions can be found.

JR-Crypto is now gearing up for the next challenge: contributing to the two technological leaps our industry requires. Both derive from blockchain technology. First, using blockchain to track gold from its origin to the end client. Second, digitising gold so that investors can buy, sell and even spend gold-backed tokens. We call on our friends in the industry to support one another in these efforts.

Joshua Rotbart is the Founder and Managing Partner of J. Rotbart & Co. , an international bullion house with offices in Hong Kong, Singapore and Manila which provides solutions for high-net worth individuals, family offices and private banks wishing to procure, transport and store physical precious metals and other tangible assets worldwide. Joshua began his career in the precious metals industry in 2010 when he joined the Malca-Amit logistics group. In 2016 Joshua established J. Rotbart & Co. In his career Joshua helped hundreds of clients handle about US$1 billion worth of goods.

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Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

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Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

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Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

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Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

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Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.