Singapore Plans to Allow Crypto Derivatives on Regulated Exchanges


Singapore has released the consultation paper on the proposed crypto derivatives. The Monetary Authority of Singapore (MAS) says the move is driven by demand.

November 20, 2019, | AtoZ Markets – Singapore’s central bank plans to regulate Bitcoin and other similar cryptocurrency futures. The bank plans on bringing futures trading on approved exchanges. However, the authorities clarified that bitcoin futures are not suitable for retail investors.

The MAS revealed that it had seen interest from international institutional investors in cryptocurrency futures like Bitcoin and ether. According to the report, the MAS has entered a consultation period until December 20, to determine the best approach to offer institutional-grade investment.

MAS proposes to list Bitcoin futures on approved exchanges

The MAS published a consultation document today, in which it sought green-light for listing “payment token derivatives” on approved exchanges under the country’s Securities and Futures Act. The proposal also came in response to demand from international institutional investors.

Currently, Singapore has four approved exchanges. These include Asia Pacific Exchange, ICE Futures Singapore, Singapore Exchange Derivatives Trading, and Singapore Exchange Securities Trading Limited.

Crypto derivatives not suitable for retail investors

In its report, the Monetary Authority of Singapore stated that payment token derivatives are not suitable for most retail investors as they have little or no intrinsic value with high price volatility. David Gerald, president of the Securities Investors Association, said that the inclusion of these products in the approved exchanges would certainly provide new opportunities for all regulated exchanges, and might help create liquidity for these products.

Some exchanges in the US, including Chicago Mercantile Exchange and ICE Futures US, allow trading of bitcoin futures. Earlier, Hong Kong authorities clarified that allowing bitcoin futures trading is illegal in the country.

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