The Monetary Authority of Singapore (MAS) revealed that it had seen interest from international institutional investors in cryptocurrency futures like bitcoin and ether. The consultation will close on 20th December, as reported by Reuters.
MAS proposes to list bitcoin futures on approved exchanges
The MAS published a consultation document today, in which it sought green-light for listing “payment token derivatives” on approved exchanges under the country’s Securities and Futures Act. The proposal came in response to demand from international institutional investors.
Currently, there are four approved exchanges in Singapore, which include Asia Pacific Exchange, ICE Futures Singapore, Singapore Exchange Derivatives Trading, and Singapore Exchange Securities Trading Limited.
Crypto derivatives not suitable for retail investors
In its report, the Monetary Authority of Singapore stated that payment token derivatives are not suitable for most retail investors as they have little or no intrinsic value with high price volatility. David Gerald, president of the Securities Investors Association, said that the inclusion of these products in the approved exchanges would certainly provide new opportunities for all regulated exchanges, and might help create liquidity for these products.
Some exchanges in the US, including Chicago Mercantile Exchange and ICE Futures US, allow trading of bitcoin futures. Earlier, Hong Kong authorities clarified that allowing bitcoin futures trading is illegal in the country.