Cryptocurrency
Singapore’s financial regulator proposes to allow trading of crypto derivatives on approved exchanges due to institutional interest
The Block reports, “The Monetary Authority of Singapore (MAS), the country’s de facto central bank and financial regulator, has just proposed to allow the listing and trading of cryptocurrency derivatives on approved local exchanges. “Under the proposal, trading of derivatives tied to cryptocurrencies such as bitcoin (BTC) and ether (ETH) will be subject to the […]
The Block reports, “The Monetary Authority of Singapore (MAS), the country’s de facto central bank and financial regulator, has just proposed to allow the listing and trading of cryptocurrency derivatives on approved local exchanges.
“Under the proposal, trading of derivatives tied to cryptocurrencies such as bitcoin (BTC) and ether (ETH) will be subject to the Securities and Futures Act of Singapore, the MAS said in a statement Wednesday.
“The plan has been put forth in response to interest from institutional investors such as hedge funds and asset managers, the MAS said. Singapore currently has four approved exchanges – Asia Pacific Exchange, ICE Futures Singapore, Singapore Exchange Derivatives Trading and Singapore Exchange Securities Trading Limited, according to the MAS.
“’A well-regulated market for derivatives – particularly one anchored by institutional investors with sophisticated risk management and investment strategies – can serve as a more reliable reference of value for the underlying asset,’ the regulator said in a consultation paper on the proposal.”