The Monetary Authority of Singapore (MAS), the city-state’s central bank, planned to allow Bitcoin and Ether derivatives trading on approved exchanges in November 2019. Singapore To Allow Crypto Derivatives Trading On Regulated Platforms.
The MAS has been seeking to get approval for “payment token derivatives.” The derivatives would then be listed and traded on “approved exchanges” under the Securities and Futures Act.
As per the central bank, presently, Singapore has the following regulated exchanges:
- Asia Pacific Exchange,
- Singapore Exchange Derivatives Trading Ltd.,
- ICE Futures Singapore, and
- Singapore Exchange Securities Trading Ltd.
Under the SFA’s supervision, Bitcoin and Ether payment tokens are not classified as underlying assets. The MAS is looking forward to placing those assets under its supervisory area to list them on authorized venues.
The move was being started after Bakkt, the bitcoin futures exchange, reported it is developing the physically-settled bitcoin futures market. The initiative would enable it to be traded on ICE Futures Singapore exchange.
In the meantime, the MAS reported those payment token derivatives are “not suitable for most retail investors” because they have “little or no intrinsic value” and exhibit high price fluctuations.