Singapore’s SGX exchange does not plan to allow crypto listings soon

As a crypto investor with some experience in the industry, I find the stance of Singapore Exchange (SGX) CEO Loh Boon Chye on not planning to allow cryptocurrency listings soon to be disappointing. While I understand the importance of having sustainable ecosystem support and effective governance before launching new products, I believe that the increasing institutional attention towards cryptocurrencies warrants a reconsideration of this decision.

Singapore Exchange (SGX) has announced it does not plan to allow cryptocurrency listings soon. 

On July 9, Loh Boon Chye, the CEO of SGX, emphasized the importance of improved circumstances before entertaining the idea of adding cryptocurrencies to their listing.

As a crypto investor, I’ve noticed that the Singapore Exchange (SGX) offers two cryptocurrency index funds: the iEdge Bitcoin Index and the iEdge Ethereum Index. These funds started in 2020 in partnership with CryptoCompare. However, it is important to note that SGX itself does not list any cryptocurrencies. Instead, these index funds track the price movements of Bitcoin (BTC) and Ethereum (ETH) respectively.

Singaporze now ranks among the most alluring locales for crypto businesses. In fact, it drew in 11% of the entire VC financing for crypto startups worldwide by the end of last year, making it a close competitor to Hong Kong. Nevertheless, the growing prominence of cryptocurrencies has yet to sway the SGX into making a favorable move.

In an interview at the Next conference with Reuters, Chye made it clear that the exchange would not be adding cryptocurrencies to its offerings in the near future. He stressed the significance of building a solid foundation for new products. This includes ensuring a robust market demand, effective oversight, and a well-designed infrastructure.

At a point when the cryptocurrency market is experiencing surging institutional interest on a global scale, Chye’s skepticism emerges. Notable developments include the U.S. SEC’s approval of Bitcoin and Ethereum spot ETFs in January, following years of postponement. Additionally, Hong Kong granted its first approvals for Bitcoin and Ethereum spot ETFs in April.

As a researcher, I’ve noticed an intriguing development following the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the United States. The Monetary Authority of Singapore (MAS), the central bank of Singapore, has issued a warning to investors regarding these products. Despite the substantial inflows, with over $14 billion, these ETFs have surpassed expectations in terms of performance.

As a researcher, I’ve come across Chye’s perspective that Singapore’s financial ecosystem isn’t fully ready to accommodate crypto products. Although SGX is recognized for its pioneering spirit, it’s crucial to ensure the necessary conditions are met before delving into crypto listings. Chye underscored the importance of a gradual approach, implying that with the passage of time, the exchange might reconsider this step.

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2024-07-09 12:48