Proposal to Allow Crypto-asset Derivatives on Approved exchanges, submitted by Singapore

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Photo by Julien de Salaberry

A November 20 report of BNN Bloomberg broadcasted that the proposal of the Monetary Authority of Singapore (MAS) would subject crypto-assets like Bitcoin and Ether to Singapore’s Securities and Futures Act.

 

The report refers to the proposal of MAS and the central bank of Singapore to bring crypto-asset derivatives trading under its regulation.

 

The proposal attracted the interest of institutional investors

 

According to the financial regulator MAS, their plan to extend their concern to crypto-asset derivatives has gotten the interest of funders and assessment managers who are connected to the sector.

 

MAS also noted that the proposal would permit approved trading in Singapore in order to manage their exposure to payment tokens while conveying the activity under regulations.

The global trading of bitcoin now sees $5-10 billion in an everyday traded volume, surpassing spot volume by 10 to 18 times, still according to BNN Bloomberg’s report.

 

Moreover, earlier this month, it was reported that the Bakkt platform, the Intercontinental Exchange (ICE), is planning to increase its prevailing Bitcoin futures products to add an option settled by cash. According to some sources, an ICE’s clearinghouse based in Singapore will be the platform used in offering the new contract.

 

Bakkt created a history in the industry in September when it launched a bitcoin monthly futures contract established physically. But, the underwhelming volumes of the platform after its release were disparagingly compared to the fiat-settled bitcoin futures on CME, which was initially launched in the last month of 2017.

 

Last November 2019, ICE’s Bakkt has reported 1,135 traded contracts, which is approximately equivalent to $9.3 million and an all-time high contract of 1,756 on November 8, as indicated on the tracking data accumulated by a Twitter account Bakkt Volume Bot.

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