The Monetary Authority of Singapore (MAS, for its acronym in English), will soon allow derivatives of Bitcoin are traded on their platforms. This would provide more confidence to investors to bet on this type of asset. The MAS issued a consultation document last Wednesday, in which he sought to give the green light to what it calls “derived token payment”. This with the purpose of trading and dealing on exchanges approved in Singapore under its Law of Securities and Futures (SFA). The document you receive suggestions from interested parties until 20 December of this year. This proposal arises as a response to the demands of various institutional investors for regulated products. Your request is done so that they can cover the exposure that they have tokens of payment such as Bitcoin and Ethereum. If approved the initiative would open the doors to even more investors interested in Singapore. This would not only benefit the industry cryptography but to the economy of the country in general. Up to now, Singapore has four bags passed: Asia Pacific Exchange, ICE Futures Singapore, Singapore Exchange Derivatives Trading, and Singapore Exchange Securities Trading Limited. The idea is that sooner rather than later, the derivatives of Bitcoin are beginning to market in these bags that are regulated by the MAS.
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Bitcoin in Singapore
Currently in the asian country the cryptocurrencies as Bitcoin and Ethereum are not categorized as underlying assets for a derivative product, in accordance with the SFA. But, despite this, the MAS revealed that it has received requests to put these assets under its mandate regulatory. This with the aim that they can get listed in the places approved by the regulator. However, the MAS explained that such derivatives of tokens of payment “are not suitable for most investors.” This is because they have “little or no intrinsic value” and have a high level of volatility in prices. This measure occurs a few days after publication of the news report Bakkt. In the document disclosed that the futures market for Bitcoin was expanding this project to Asia. Which means that now might be considering establishing a physical headquarters to be able to operate in that region of the world in Singapore. Still need to wait how it turns out is initiative on derivatives of Bitcoin and other cryptocurrencies in the asian country. But, at least for the time being, we have high expectations of their results. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.