Singapore Exchange Has No Current Plans for Crypto Listings, CEO Says

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As an analyst with a background in financial regulation and market analysis, I believe that Singapore Exchange (SGX) will not be approving any crypto listings in the near future based on CEO Loh Boon’s recent statements. The ecosystem in Singapore is currently not ready to support such products due to insufficient demand, governance, and structure. However, as Boon mentioned, things can change over time.

The CEO of Singapore Exchange (SGX), Loh Boon, has indicated that the exchange is unlikely to approve any crypto-related listings in the near future. He explained that the present circumstances do not make it an opportune time for SGX to introduce crypto products.

Speaking in Singapore at the Reuters NEXT conference, he said:

To ensure the success of any new product introductions, it’s essential to establish a sustainable system in place. This involves fostering strong market demand, implementing effective governance, and building a solid framework.

Regarding the query on crypto listings being considered by the bourse, Boon replied, “We’re not prepared to do so presently.” The CEO expressed his viewpoint that Singapore’s ecosystem isn’t mature enough for such offerings yet. Nevertheless, he left room for the possibility of a shift in perspective as circumstances evolve.

“He remarked that we’re constantly pushing boundaries and innovating, making us a leading exchange or platform in the world as circumstances change and the ecosystem develops over time.”

In the initial six months of the 2024 financial year, Singapore Exchange (SGX) reported a net profit amounting to S$281.6 million (approximately $208.7 million USD), representing a 1% decline compared to the same period in the preceding year. The total market value of all listed securities on SGX as of June’s end was an impressive S$792.93.

Crypto Regulations Expand in Singapore

Singaporean authorities have been meticulously crafting rules and taking proactive steps to oversee the cryptocurrency market within their jurisdiction. An illustrative example is the Monetary Authority of Singapore (MAS), which unveiled an update to the Payment Services Act and related legislation in April. The objective of this amendment is to extend regulatory oversight to digital tokens, specifically those engaged in token transfers or exchanges. Commencing from April 4, these Digital Payment Token (DPT) service providers are obligated to uphold user protection standards and ensure financial stability.

This month, the Ministries of Finance and Home Affairs, along with the Monetary Authority of Singapore (MAS), issued a warning about the potential misuse of digital payment systems by criminals and terrorist organizations for terrorism financing (TF). The joint assessment discovered that the risk associated with such transactions via Digital Payment Tokens (DPTs) has decreased slightly from medium-high to medium-low. Despite a lack of reported cases linking DPTs to TF activities, the report emphasized Singapore’s awareness of the heightened risks stemming from the growing presence of DPT service providers.

Authorities Issue DPT Approvals

As a analyst, I would put it this way: Despite concerns about illicit activities involving cryptocurrencies, Singapore has granted approval to blockchain technology firm Paxos. Consequently, Paxos Digital Singapore Pte Ltd, the local entity of the company, is now authorized to provide Digital Payment Token (DPT) services in Singapore. In simpler terms, Paxos can issue stablecoins within the country’s jurisdiction.

Based on Paxos’ announcement, DBS Bank, which is the largest bank in Southeast Asia in terms of assets, has been named as the principal financial institution for managing the stablecoin reserves and cash transactions.

I’m pleased to announce that the Monetary Authority of Singapore (MAS) has given its preliminary approval for OKX, the crypto-exchange, to carry out a payments business in the country. This means that OKX can now offer Digital Payment Token (DPT) and cross-border fund transfer services in Singapore. The exchange has identified this market as a top priority due to its potential growth opportunities.

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2024-07-09 15:18