Introduction
In response to the increasing interest from institutional investors in cryptocurrencies, Singapore’s leading derivatives exchange is set to unveil two new futures products focusing on Bitcoin and Ether before the month concludes. SGX Derivatives will introduce the Bitcoin View More and Ether View More perpetual futures on November 24. These innovative financial instruments allow investors to speculate on the real-time price movements of these digital assets without any expiration date attached.
Announcement and Market Demand
The Singapore Exchange (SGX) announced this initiative, emphasizing the growing demand for digital assets among institutions and the merging of traditional finance with crypto-based ecosystems. Perpetual futures have gained widespread popularity in the global market and might significantly contribute to SGX’s revenue growth.
Access and Regulation
Only accredited and professional investors will have access to these perpetual futures, which will be regulated by the Monetary Authority of Singapore (MAS). This upcoming launch marks SGX’s second foray into Bitcoin and Ether perpetual futures, following EDXM International’s earlier offering on July 23, which included a diverse range of 44 products, such as futures for Solana and XRP.
Regulatory Framework
Singapore has been cautiously navigating the expansion of its digital asset regulatory framework. In April 2022, the city-state enacted the Financial Services and Markets (FSM) Act, enhancing the MAS’s regulatory powers over cryptocurrency companies operating domestically and globally. A crucial directive required local firms providing digital token services to halt those activities overseas or secure licensing by a set June 30 deadline. Non-compliance could lead to substantial penalties, including fines up to 250,000 Singapore dollars (approximately $200,000) and possible imprisonment for up to three years.
Legal Status of Cryptocurrencies
Although cryptocurrencies are legal within Singapore, they do not hold the status of legal tender, instead being categorized as digital payment tokens (DPTs), securities, or utilities based on their specific characteristics. According to a global cryptocurrency adoption index published by Chainalysis, Singapore ranks 15th in the world for the adoption of crypto assets.
