Singapore's Central Bank Paves the Way for Regulatory Oversight of Cryptocurrency Derivatives Trading

Brian Njuguna   Nov 21, 2019 01:41 1 Min Read - 2019-11-21T094019.681.jpg

The Monetary Authority of Singapore (MAS), Singapore's central bank and regulatory authority has revealed regulatory plans to permit the trading of cryptocurrency derivatives on select platforms. This oversight strategy is being fronted because investors are considerably favoring these products. 

Cryptocurrencies have gained substantial interest since they were incorporated about a decade ago. This aspect has, therefore, made daily trading values to reach unprecedented levels to the tune of billions of dollars. For instance, according to Coinmarketcap, the total market value of Bitcoin based on the number in circulation is estimated to be $148 billion. 

The regulatory proposals will, therefore, see Singapore’s Securities and Futures Act changed as they will be applied to approved exchanges, including the Singapore Exchange, as well as licensed intermediaries like brokers. 

The MAS stipulated that these changes were prompted by inquiries received from industry participants keen on listing and trading cryptocurrency derivatives that are commonly referred to as payment token derivatives in Singapore. 

The MAS noted: “The trading of the most popular digital tokens has largely been on unregulated markets... where there have been allegations of fictitious trades, cornering, and market manipulation.”

The explosive popularity of cryptocurrencies has necessitated regulatory measures when it comes to derivatives trading, and this is an issue highlighted by the MAS. 


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