While Wall Street welcomes the first US-listed bitcoin ETFs with open arms, bitcoin-etfs-not-approved-retail-investors-singapore-us-sec-approval-mas-4053371″ target=”_blank” rel=”noopener nofollow”>Singapore remains cautious. The Monetary Authority of Singapore (MAS) has rejected the idea of offering these types of investments to retail investors, citing long-standing concerns about the risks of cryptocurrency trading.
Singapore rejects bitcoin ETF
This comes just a week after the US Securities and Exchange Commission (SEC) gave the green light to the first spot bitcoin ETFs, allowing institutional and retail investors to gain exposure to the cryptocurrency more largest in the world without owning it directly. The move sparked a frenzy, with $4.6 billion worth of shares changing hands on the first day of trading.
However, Singapore is not following suit, with the country's regulatory agency reiterating its long-standing position that cryptocurrencies are “highly volatile and speculative in nature,” deeming them unsuitable for the average investor.
This echoes the cautious approach of many global regulators dealing with the burgeoning and often turbulent world of digital assets.
The regulator emphasized that bitcoin spot ETFs, which fall into the category of collective investment schemes (CIS) accessible to retail investors, are not approved assets for this purpose. bitcoin and other digital payment tokens (DPTs) have simply not met the MAS criteria for inclusion in CIS products.
bitcoin currently trading at $42,522 on the daily chart: TradingView.com
This stance is not a sudden U-turn. In November, MAS announced plans to tighten crypto regulations for Singapore retail customers by mid-2024. These measures, first proposed in October 2022, target consumer access, business conduct and technological risks associated with cryptocurrency trading.
Image: International Finance Magazine
Caution Advised: Retail Investors Browse bitcoin ETFs
The persistent advice to retail investors is resolute: “Exercise caution” when considering participation in bitcoin ETFs. Even if they choose to explore these investment opportunities through foreign markets, regulatory bodies such as the MAS emphasize the existence of additional risks, particularly those inherent in trading on foreign platforms.
MAS underscores the importance of deep understanding and awareness among retail investors about the complexities of bitcoin ETFs and the specific challenges associated with participating in foreign markets. The warning extends beyond the inherent volatility of cryptocurrency markets and touches on the unique complexities and potential dangers associated with interacting with foreign trading platforms.
They also emphasized the responsibility of authorized capital market intermediaries to ensure adequate risk disclosure and suitability assessments for such clients.
Meanwhile, the Singapore Exchange (SGX) acknowledged the SEC's decision but stated that bitcoin spot ETFs have not been approved for trading on its platform. However, they indicated their interest in staying abreast of the evolution of the cryptocurrency landscape.
Featured image from Freepik
