Singapore’s main derivatives exchange will launch two up-to-date cryptocurrency futures products this month, citing growing institutional interest in digital assets.
SGX Derivatives markets Bitcoin (BTC) and Ether (ETH) perpetual futures, which are financial derivative contracts that allow investors to place bets on the spot price of the underlying without an expiration date.
On Monday announcementSGX said it is introducing up-to-date trading products to meet what it describes as “growing demand for institutional cryptocurrencies, convergence of TradFi and crypto ecosystems.”
Perpetual contracts will be introduced to trading on November 24. Perpetual futures are among the most actively traded cryptocurrency derivatives in the world and could become a significant up-to-date source of revenue for SGX.
The contracts will enable accredited and experienced investors to trade exposure to the underlying asset without an expiry date. The offer will be regulated by the Monetary Authority of Singapore (MAS).
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This marks the launch of the second Bitcoin and Ether-based perpetual futures in Singapore. The initial offering was launched by EDXM International on July 23 with a total of 44 trading products, including Solana (SOL) and XRP (XRP) futures, according to EDXM data announcement.
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Singapore continues its cautious adoption of cryptocurrencies
Singapore has maintained a cautious regulatory stance as it expands its digital asset framework.
In April 2022, Singapore passed the Financial Services and Markets (FSM) Act, giving MAS greater powers to regulate crypto companies that operate outside the country but are based in Singapore.
MAS had previously set a deadline of June 30 for local crypto service providers to stop offering digital token (DT) services in overseas markets.
Under the directive, Singapore-based companies or individuals offering DT services abroad had to cease operations or obtain a license until the DTSP regulations came into force.
Companies violating these rules face fines of up to 250,000 Singapore dollars ($200,000) and prison terms of up to three years.
Cryptocurrencies are legal in Singapore but are not considered legal tender. Instead, depending on their characteristics, they are classified as digital payment tokens (DPTs), securities or utilities.
Singapore ranks 15th in the blockchain analytics firm’s global cryptocurrency adoption index Chain analysis.
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