Please practice “extreme caution”
MAS reiterated its long-held view that trading in virtual currencies is highly volatile and speculative in nature and that such trading is inappropriate for retail investors.
In November, it announced that it would introduce measures to tighten cryptocurrency regulations for retail customers in Singapore in mid-2024.
The company first proposed measures to protect customers from the risks of cryptocurrency trading in October 2022, covering the areas of consumer access, business conduct, and technology risks.
MAS told CNA that people “must exercise extreme caution” if they still choose to trade Bitcoin ETFs in foreign markets.
In addition, additional risks associated with trading in foreign markets must be carefully considered, the regulator said.
It added that capital markets intermediaries licensed by the MAS and providing access to overseas markets will need to ensure appropriate risk disclosure and appropriate customer suitability assessments.
On Wednesday, the Singapore Exchange (SGX) told CNA it took note of the SEC’s decision.
SGX emphasized that the Spot Bitcoin ETF has not been approved for listing in Singapore, but said it is closely monitoring developments in the crypto sector.
A spokesperson for SGX said: “As with any new product, we are considering whether the ecosystem is ready to support its growth, including market demand, regulation, governance and other developments in crypto assets.” said.
“We will continue to monitor developments in the digital assets and decentralized finance space.”