The MAS is concerned because the international institutional investors interested in the cryptocurrency sector have increasingly noted their need for a properly regulated product to trade with if they are to make a significant enough play into the market.
“MAS’ proposal will allow Approved Exchanges in Singapore to meet the need of investors to manage their exposure to payment tokens while bringing the activity under regulatory oversight.”
So far, the country has four fully-regulated exchange platforms including the Singapore Exchange Securities Trading Limited, ICE Futures Singapore, Singapore Exchange Derivatives Trading and the Asia Pacific Exchange. Regardless, cryptocurrencies do not currently qualify for assets that can form the basis for a derivative product. MAS is now currently considering changing this, due to unignorable demand from interested parties.
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