Singapore's Financial Regulator to Give Green Light to List Crypto Derivatives on Stock Exchanges

This is in response to interest from hedge funds and asset managers, said MAS.

  • Trading of crypto derivatives on approved domestic exchanges will be subject to Securities and Futures Act
  • Asia Pacific Exchange (APEX) is keen on offering these products and have already started the research
  • Crypto derivatives “not suitable” to retail investors, MAS strongly advises against trading

The Monetary Authority of Singapore is poised to let crypto derivatives to be listed and traded on approved domestic exchanges, Singapore’s financial regulator said on Wednesday.

Under its proposal, trading of derivatives on cryptocurrencies like Bitcoin and Ethereum will be subject to the Securities and Futures Act. This proposal MAS said is made in response to interest from asset managers and hedge funds that trade such products. The regulator said it it's official statement,

“MAS’s proposal will allow approved exchanges in Singapore to meet the need of investors to manage their exposure to payment tokens while bringing the activity under regulatory oversight.”

ICE Singapore will Address the Needs of Institutional Traders

In the US, CME Group and Intercontinental Exchange (Bakkt) are already offering Bitcoin futures and are planning to further introduce other derivatives products in the coming months. Jennifer Ilkiw, vice president for the Asia Pacific at ICE said,

“A clear regulatory framework will support the healthy development of digital-asset markets,”

“We appreciate that MAS is moving ahead with this consultation. Bakkt and ICE have created an end-to-end regulated solution for Bitcoin markets on both ICE Futures U.S. and ICE Futures Singapore to address the needs of institutional traders.”

MAS: Retail Investors Strongly Advised not to Trade

ICE’s local unit Singapore Exchange Derivatives Trading and Asia Pacific Exchange (APEX) are among the MAS approved platforms but currently doesn’t list any such products.

APEX has already started the product research and development as shared by the platform's Nelvin Toh to Bloomberg. Toh said,

“Asia Pacific Exchange is extremely keen to take the lead in offering Payment Token Derivatives on an approved exchange in Singapore.”

However, MAS is taking a cautious approach for retail investors and considers crypto derivatives “not suitable” to most of them. As per the proposed measures, a minimum of 50% margin will be required for retail investors. The regulator said,

“Retail investors are strongly advised not to trade in payment token derivatives, and even if they choose to do so, should exercise utmost caution.”

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,235FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won't Get Rid of Me'

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is...

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June...

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows. yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today