Singapore Proposes Allowing Bitcoin, Ether Derivatives Trading on Approved Exchanges

The Monetary Authority of Singapore (MAS), the city-state's de facto central bank, may soon allow cryptocurrency-based derivatives to be traded on regulated platforms.

Nov 20, 2019 at 10:11 a.m. UTC
Updated Sep 13, 2021 at 11:43 a.m. UTC

The Monetary Authority of Singapore (MAS), the city-state's de facto central bank, may soon allow cryptocurrency-based derivatives to be traded on regulated platforms.

The MAS published a consultation paper on Wednesday, seeking to green-light what it calls "payment token derivatives" for listing and trading on "approved exchanges" in the country under its Securities and Futures Act (SFA).

The proposal comes as a response to demand from international institutional investors for regulated products to be able to hedge their exposure to payment tokens such as bitcoin (BTC) and ether (ETH), the agency said.

Singapore now has four approved exchanges, namely, Asia Pacific Exchange, ICE Futures Singapore, Singapore Exchange Derivatives Trading and Singapore Exchange Securities Trading Limited, according to MAS.

Payment tokens such as bitcoin and ether are currently not categorized as an underlying assets for a derivative product under the oversight of the SFA. However, MAS said it has received requests to put such assets under its regulatory remit in order for them to be listed on approved venues.

The move comes just days after news report that Bakkt, the bitcoin futures market launched by New York Stock Exchange owner ICE, is expanding its physically settled bitcoin futures product in Asia, making it available for trading on ICE Futures Singapore.

Meanwhile, MAS said such payment tokens derivatives are "not suitable for most retail investors" as they have "little or no intrinsic value" with high price volatility.

The consultation paper is open for feedback from interested parties until Dec. 20.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Coinbase-Led Travel Rule Group Grows Members, Expands to Canada and Singapore

The original group of founding crypto blue chips has now swollen to over 30, including heavyweights like Binance US, Circle, Robinhood and Paxos.

The original group of founding crypto blue chips has now swollen to over 30, including heavyweights like Binance US, Circle, Robinhood and Paxos.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin Records Eighth Week of Losses, but Sentiment Indicator Suggests Upside

Sentiment indicators reached “rock bottom” on Monday amid a prominent fund manager calling for a retest of 2019’s price levels.

Sentiment indicators reached “rock bottom” on Monday amid a prominent fund manager calling for a retest of 2019’s price levels.

CoinDesk - Unknown
3
CoinDesk - Unknown
Coinbase Enters Fortune 500 List of Biggest US Companies

The first crypto company to join the list recorded revenue of over $7.8 billion in fiscal 2021 and placed 437th.

The first crypto company to join the list recorded revenue of over $7.8 billion in fiscal 2021 and placed 437th.

CoinDesk - Unknown
4
CoinDesk - Unknown
Climate Company Flowcarbon Raises $70M Through A16z-Led Round, Sale of Carbon-Backed Token

Flowcarbon aims to drive investment in projects that remove carbon from the atmosphere by creating a protocol that tokenizes carbon credits.

Flowcarbon aims to drive investment in projects that remove carbon from the atmosphere by creating a protocol that tokenizes carbon credits.

CoinDesk - Unknown