Singapore: Crypto Derivatives Set to Come Under Regulatory Oversight

Published at: Nov. 20, 2019

Singapore's central bank and financial regulator, the Monetary Authority of Singapore (MAS), has proposed bringing crypto derivatives trading under its purview.

According to a BNN Bloomberg report on Nov. 20, the MAS’ proposal would make the trading of derivatives based on underlying assets like Bitcoin (BTC) and Ether (ETH) subject to the city-state’s Securities and Futures Act.

Institutional investor interest sparked proposal

According to the MAS, plans to extend its remit to crypto derivatives have been spurred by interest from hedge funds and asset managers engaged in the sector.

Bitcoin derivatives trading globally currently sees $5–10 billion in daily traded volume, exceeding spot volume by 10 to 18 times, the report notes, citing data from Skew and BitcoinTradeVolume.

MAS has said its proposal will “allow approved exchanges in Singapore to meet the need of investors to manage their exposure to payment tokens while bringing the activity under regulatory oversight.”

As reported earlier this month, the Intercontinental Exchange’s (ICE) Bakkt platform is planning to expand its existing Bitcoin futures products to include a cash-settled option. Sources have claimed the new contract will be offered via ICE’s Singapore-based clearinghouse, ICE Clear Singapore, and traded on the ICE Futures Singapore exchange. 

Bakkt, CME and beyond

Bakkt made industry history in September with its  launch of a physically-settled Bitcoin monthly futures contract. 

However, the platform’s underwhelming volumes in the first week following its launch were unfavorably compared to the fiat-settled BTC futures on CME, which first launched back in December 2017. 

Bakkt reported 1,135 traded contracts (~$9.3 million) yesterday, Nov. 19, having reported an all-time high of 1,756 contracts on Nov. 8, according to tracking data compiled by Twitter account Bakkt Volume Bot. 

As of press time, Binance Futures is reporting a solid $748 million in daily traded volume for its Bitcoin/Tether (USDT) perpetual contract.

Earlier this month, financial technology firm Tassat received the green light from United States regulators to secure the transfer of existing registration rights from an affiliated financial services firm, paving the way toward launching a compliant crypto derivatives exchange. 

Yesterday, Tassat revealed a partnership with digital asset market maker Blockfills to launch an institutional Trade at Settlement product for spot Bitcoin (XBT/USD).

Tags
Bitcoin Regulation
Singapore
Cryptocurrencies
Investments
Related Posts
Singapore: Regulator Warns of Online Scam Claiming Gov’t Adoption of Crypto
The Monetary Authority of Singapore (MAS) has warned the public against an alleged scam claiming that a cryptocurrency is officially adopted by the government, according to an official statement on Jan. 29. MAS, which is both Singapore's central bank and the country’s financial regulator, writes that the fraudulent scheme is being spread through websites that offer crypto investment using false data attributed to the government. The fraudulent websites reportedly claim that Singapore is adopting a cryptocurrency as its official coin, and ask users to provide personal and financial data to buy the crypto on an exclusive basis. Apart from reporting …
Bitcoin / Jan. 30, 2019
BTC holds crucial support at $40K! | Watch The Market Report with Gareth Soloway
Join Cointelegraph host and analyst Benton Yaun alongside resident market experts Jordan Finneseth and Marcel Pechman on “The Market Report” — which is live right now! Here’s what to expect in this week’s markets news breakdown: Whales have been busy moving a record amount of Bitcoin (BTC). How will this affect prices? Bitcoin is long overdue for a “FOMO rally” to new all-time highs, according to Bobby Lee, the former CEO of BTCC. Does his claim have merit? Despite China’s crackdown on the crypto industry last week, Bitcoin nodes still appear to be operating in the People’s Republic, proving Bitcoin’s …
Bitcoin / Sept. 30, 2021
Deutsche Borse’s platform Xetra to list its first Ether ETPs
Deutsche Borse’s electronic trading platform, Xetra, is preparing to launch its first Ether (ETH)-based exchange-traded products, or ETPs. According to data from Xetra, the platform is set to debut trading of two Ether ETPs — ETC Group’s Ether exchange-traded commodity, or ETC, product (ZETH) and 21Shares’ Ethereum ETP (AETH) — on Tuesday. A spokesperson for Deutsche Borse told Cointelegraph that the two products will be the first Ether ETPs to ever be listed on Xetra. Alongside AETH, Xetra will be also listing 21Shares’ Bitcoin Cash (BCH) ETP, the firm’s global head of ETP, Laurent Kssis, told Cointelegraph. “As of tomorrow …
Ethereum / March 8, 2021
Russia: Central Bank Suggests Limiting Sale of Crypto Assets for ‘Unqualified Investors’
The Central Bank of Russia wants to set an annual limit for so-called “unqualified investors” that want to purchase digital assets, local business media giant RBC reported on Tuesday, March 12. According to the documents obtained by RBC, the bank wants to amend the current draft crypto bill, dubbed “On Digital Financial Assets,” which recently passed a second of three readings in Russia’s parliament, the State Duma. The central bank’s paper recommends equating investor limits to the ones set in a draft bill on crowdfunding, which is also being reviewed by the Russian parliament. The head of the State Duma’s …
Bitcoin Regulation / March 12, 2019
Crypto lender Matrixport seeks $100M funding despite lending crisis
Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million funding despite the ongoing crypto market crisis. Lead investors have already committed $50 million for Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported on Nov. 25. The deal has yet to be finalized as Matrixport is still looking for investors for the other half of the round. We're excited and look forward to engaging with participants, on similar terms, in the other half of the #funding round. Appreciate the trust and confidence our investors continue have in Team #Matrixport.@business …
Bitcoin / Nov. 25, 2022