The Monetary Authority of Singapore (MAS) has revealed that it will not allow the listing of a Bitcoin (BTC) spot Exchange Traded Fund (ETF) in the Asian nation. Citing reasons for its unyielding stance, the MAS stated that BTC lacks the features to qualify as an ideal ETF. Additionally, the MAS claimed that cryptocurrencies' speculative nature and high volatility contribute to the drawbacks, making them unsuitable for ETFs.
MAS Stance Does Not Include Local Brokers
Despite its stubborn stance on trading ETFs in Singapore, the MAS noted that the decision does not affect local brokers. Per local media, MAS-licensed capital markets intermediaries can offer foreign market-relater investments, including cryptocurrency ETFs. However, they must present enough risk disclosure and suitable customer assessment. In addition, investors will access limited assets, underscoring a stringent regulatory outlook for Singaporean investors.
Singapore’s Largest Exchange Will Not List Crypto ETFs
In a recent statement at the Reuters NEXT conference, Singapore Exchange (SGX) CEO Loh Boon Chye revealed that the multi-asset exchange did not plan to permit cryptocurrency listings. He highlighted the current unconducive market conditions as a reason for this prohibition.
While Loh expressed concerns that Singapore's ecosystem was not ready to support such crypto products, the SGX CEO did not rule out the possibilities of future Bitcoin and crypto ETF listings.
In the meantime, SGX is facing pressure from institutional investors and industry bodies to enhance its ability to attract listings of high-growth companies. Additionally, the exchange has struggled with low liquidity and valuations owing to its limited retail investor base.
Crypto ETFs Gaining Global Recognition
Noteworthily, SGX’s reluctance to adopt cryptocurrency listings contradicts current happenings around the globe, including Hong Kong, the United States, Australia, and Canada, where crypto ETFs have become a norm.
The approval of Spot Bitcoin Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission earlier this year marked a significant milestone for the crypto industry. It has since initiated a cascade that has seen similar initiatives in many parts of the world, including Asia.