Cryptocurrency derivatives have recently garnered a lot of hype of late following the launch of Intercontinental Exchange’s <a href="https://www.cryptoknowmics.com/crypto/bakkt-futures-attracted-only-usd-5-million-in-its-first-week/">Bakkt</a> platform. Singapore now seems to be on board the hype ship now after the Monetary Authority of Singapore (MAS) approved to “payment token” derivatives, in order to list as well as trade on regulated exchange platforms.
According to the MAS official <a href="https://www.mas.gov.sg/news/media-releases/2019/mas-consults-on-proposed-changes-to-regulate-payment-token-derivatives-traded-on-approved-exchanges">website</a>, a consultation <a href="https://www.mas.gov.sg/-/media/MAS/News-and-Publications/Consultation-Papers/2019-Payment-Token-Derivatives/Consultation-Paper-on-Proposed-Regulatory-Approach-for-Derivatives-Contracts-on-Payment-Tokens.pdf?la=en&amp;hash=17EDEB7F20EB609AEE2D81C3C64DC609A9E3B775">paper</a> highlighting the approval and regulation of trading of derivatives on approved exchanges under the Securities and Futures Act [SFA] was issued earlier today. The MAS also noted the need for institutional investors to own a regulated product, in order to acquire and hedge their exposure to currencies like Bitcoin and Ether. The announcement stated:
<blockquote>“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.”</blockquote>
Moreover, in the announcement, the MAS also warned retail investors on the same. The watchdog suggested that derivatives and cryptocurrencies are not “suitable” for retail investors.
<h2>Four Approved Exchanges in Singapore</h2>
Furthermore, MAS stressed on the need for approved exchange platforms to carry forward the trade of cryptocurrency derivatives. The financial authority also claimed that there were about four approved exchanges in the country. These include Asia Pacific Exchange Pte. Ltd., ICE Futures Singapore Pte. Ltd., Singapore Exchange Derivatives Trading Limited, and Singapore Exchange Securities Trading Limited
<blockquote>“MAS will require Approved Exchanges and licensed intermediaries to include risk warnings tailored to payment token derivatives in informational materials provided to investors.”</blockquote>
<h2>Singapore Joins the Derivatives Race</h2>
In addition, Crypto derivatives have gained popularity in the U.S.  Major derivatives exchange company, CME Group has been offering bitcoin futures since 2017. The firm has traded nearly 7,000 futures contracts (equivalent to about 35,000 bitcoin), on average each day. CME is planning to launch bitcoin options in January 2020.

Singapore to Accept Crypto Derivatives on Approved Exchanges

Cryptocurrency derivatives have recently garnered a lot of hype of late following the launch of Intercontinental Exchange’s Bakkt platform. Singapore... %

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Singapore to Accept Crypto Derivatives on Approved Exchanges

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