Key Points
- SGX is not planning to allow cryptocurrency listings in the near future.
- CEO Loh Boon Chye emphasizes the need for better conditions before considering such listings.
Singapore Exchange (SGX) has made it clear that they are not intending to permit cryptocurrency listings in the immediate future.
The CEO of SGX, Loh Boon Chye, voiced this stance on July 9, underscoring the necessity for improved conditions before contemplating such listings.
SGX’s Current Support for Cryptocurrency
Despite supporting the iEdge Bitcoin Index and the iEdge Ethereum Index since 2020 in partnership with CryptoCompare, SGX does not permit crypto listings. These funds monitor the prices of Bitcoin (BTC) and Ethereum (ETH).
Singapore has recently emerged as a popular location for crypto ventures. Together with Hong Kong, it garnered 11% of the total venture capital funding for crypto startups worldwide as of December last year. However, the growing prominence of crypto has not persuaded SGX to make a positive decision.
SGX’s Stance on Crypto Listings
In a recent interview at the Next conference from Reuters, Chye confirmed that the exchange has no plans to support crypto listings in the near future. He highlighted the importance of a sustainable ecosystem for launching new products. This includes sufficient demand, effective governance, and a well-structured framework.
Chye’s skepticism comes at a time when the cryptocurrency market is attracting substantial institutional attention worldwide. The U.S. SEC approved spot Bitcoin ETFs in January after years of delay and has partially approved spot Ethereum ETFs. Hong Kong also approved its first spot Bitcoin and Ethereum ETFs in April.
Following the U.S.’s listing of spot Bitcoin ETFs, the Monetary Authority of Singapore (MAS), the nation’s central bank, warned investors against investing in these products. Despite their caution, the ETFs have greatly exceeded expectations, with over $14 billion in net inflows.
Chye, however, argued that Singapore’s current ecosystem is not ready for such products. SGX, known for its innovation, requires the right conditions before proceeding with crypto listings. Over time, the exchange may consider this move.
