The Monetary Authority of Singapore has stated that it will not allow the trading of a spot Bitcoin exchange-traded fund (ETF) in the city-state after the recent approval of the product in the United States.
A spokesperson with knowledge of the matter said that the regulator has not allowed retail investors to trade spot cryptocurrency ETFs.
No Spot Bitcoin ETF in Singapore
As per a report, the approval of a spot Bitcoin ETF in the United States in early January attracted the attention of many investors.
Regulations Prevent Retail Investors from Investing in Crypto ETFs
However, as per the spokesperson, Singaporean investors can participate in collective investment schemes (referred to as CIS) under the supervision of the Securities and Futures Commission (SFC), which covers ETFs. At present, Bitcoin and other digital payment instruments (DPT) are not eligible assets for retail CIS.
It is important to note that capital market intermediaries licensed by the regulator can provide investors exposure to ETFs listed abroad, but they are required to ensure adequate risk disclosure and an appropriate customer suitability assessment.
Spot Bitcoin ETFs Not Suitable for Retail Investors
While retail investors can gain access to spot Bitcoin ETFs listed in the US via local vouchers, the spokesperson added:
“Encrypted currency transactions are inherently highly volatile and speculative and are not suitable for casual investors. Those who still choose to trade Bitcoin ETFs in overseas markets must be extra cautious. In addition, they should carefully consider the additional risks associated with overseas market transactions.
Crypto and Singapore
Singapore’s central bank introduced a framework for stablecoin regulation in 2023, stating that the structure seeks to foster stablecoin adoption “as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems.”
Multiple crypto firms have been licensed in the city-state as well. American tech company Ripple Labs Inc. secured a Major Payments Institution (MPI) license from the MAS.