In a recently published document, the Monetary Authority of Singapore(MAS) signaled that it may soon release the creation of a bitcoin futures market in Singapore. The text indicates that payment token derivatives may be listed and traded on approved exchanges in the country under the Securities and Futures Act (SFA).
According to the agency, the proposal is a response to the demand of international institutional investors for regulated products. With this, the goal is to protect exposure to payment tokens such as Bitcoin (BTC) and Ethereum (ETH).
Currently, the country has four approved exchanges. They are Asia Pacific, ICE Futures Singapore, Singapore Exchange Derivatives Trading and Singapore Exchange Securities Trading Limited.
Payment tokens such as Bitcoin and Ethereum are currently not categorized as assets underlying a derivative product under the supervision of SFA. However, MAS said it received requests to include these assets under its regulatory assignments, so that they are listed in approved locations.
The move comes just days after the news that Bakkt is expanding its future bitcoin product physically liquidated in Asia, making it available for trading at ICE Futures Singapore.
Meanwhile, MAS said these derivatives of payment tokens “are not suitable for most retail investors” because they have “little or no intrinsic value” with high price volatility.
Bitcoin futures market in Singapore is maturing
2019 was marked by the maturing of the cryptocurrency market. For instance, there has been a new wave of tokens issuance in a more regulated way, concomitant with the end of the ICO hype. Another example is the appearance of regulated exchanges and the first Initial Exchanges Offering (IEO). That is, issuing tokens through exchanges.
On the other hand, international bodies have handled the matter responsibly. The FATF, linked to the G20, has recommended greater control of the cryptocurrencies destination aiming to combat the use of these assets for money laundering or terrorism.