- Singapore has restricted the local listing of Bitcoin ETFs despite U.S. approval.
- The Monetary Authority of Singapore cited the asset class as non-eligible.
- Retail investors are allowed to access international options.
The U.S. approval of Bitcoin ETFs on January 10 marked a momentous chapter for the cryptocurrency industry, sparking a global demand for the asset class among local and international investors. However, while many regions consider embracing this trend, others remain skeptical, maintaining a cautious distance.
In line with this, Singapore, despite its renowned proactive approach to the crypto industry, has unveiled a contrasting stance towards the emerging investment.
Singapore Restricts Bitcoin ETFs
According to a local report on Wednesday, the Monetary Authority of Singapore has disapproved the listing and trading of Bitcoin ETFs within its local jurisdiction.
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MAS’ regulatory stance stems from cryptocurrencies, including Bitcoin, not being deemed eligible assets for ETFs in Singapore, leading to restrictions on their listing for institutional and retail investors.
While the decision enforces a ban on Bitcoin ETFs in Singapore, retail investors can explore international investment offerings.
“Cryptocurrency trading is highly volatile and speculative in nature and is not suitable for retail investors. Those who still choose to trade Bitcoin ETFs in overseas markets must exercise extreme caution. In addition, they should also carefully consider trading with overseas markets. associated additional risks,” a MAS spokesperson stated.
Licensed intermediaries in Singapore can provide overseas-listed spot Bitcoin ETFs to investors, subject to mandatory risk disclosure and suitability assessments for retail participants looking to engage.
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Singapore is not the only country to take a stance against Bitcoin ETFs, as Thailand has also made a similar move.
Thailand Rejects Bitcoin ETFs
The Thailand Securities and Exchange Commission (SEC) has unveiled its unwillingness to allow Bitcoin ETFs within its region, citing the lack of the necessary policy framework to support the asset class.
The decision bars the local listing and trading of Bitcoin ETFs within Thailand. However, investors can explore foreign alternatives through licensed domestic exchanges operating under the Thailand Digital Assets Decree regulations.
Additionally, the SEC clarified that securities companies could offer retail customers foreign product investment services, with the condition that these services mirror products permissible for sale within Thailand.
On the Flipside
- Despite the cautious approach from Singapore and Thailand, Bitcoin ETFs are thriving in the United States and have attracted over $10 billion since launch.
- In contrast, Hong Kong, another Asia-Pacific country, has expressed willingness to greenlight Bitcoin ETFs within its jurisdiction.
- Bitcoin ETFs are also offered in various international markets such as Canada, Germany, Australia, and Brazil.
Why This Matters
Singapore’s disapproval of local Bitcoin ETF listings, as declared by the Monetary Authority of Singapore (MAS), showcases the diverse regulatory approaches and acceptance levels toward this emerging investment vehicle.
Read more about the performance of Bitcoin ETFs in the U.S:
Bitcoin ETFs Historic $10 Billion Sale Lauded by Experts
Altcoins are all the buzz at the moment; find out more:
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