The regulator clarified the ban by stating that retail investors in Singapore can still participate in cryptocurrency exchange-traded funds (ETFs) listed overseas. This means that intermediaries authorized by MAS to manage investments related to foreign markets can facilitate retail investments in these ETFs abroad. However, these intermediaries must ensure that they fully disclose the risks associated with cryptocurrency trading and conduct thorough client assessments.
MAS reiterated its stance on the highly volatile and speculative nature of cryptocurrency trading, emphasizing that it is not suitable for retail investors. The regulator advised caution for those trading Bitcoin ETFs in overseas markets, stating that Bitcoin is not a very suitable asset for an ETF due to the speculative nature of cryptocurrency trading.
“Bitcoin is not a very suitable asset for an ETF. Cryptocurrency trading is fraught with speculation, so we advise caution for those trading Bitcoin ETFs in overseas markets,” explained MAS Singapore.
The Singapore Stock Exchange (SGX) responded to MAS’s announcement by stating that it is closely monitoring developments in the field of cryptocurrencies and decentralized finance. As with any new products, SGX is assessing whether the ecosystem is ready to support their growth, taking into account market demand and regulatory considerations.
It’s worth noting that MAS had previously tightened regulations for digital payment token service providers in November, limiting their ability to work with retail clients. The regulator has also updated rules to protect institutional cryptocurrency investors from potential risks.