Singapore Exchange (SGX) Has No Immediate Plans for Crypto Listings, CEO Says

Singapore Exchange (SGX) has no immediate plans to allow cryptocurrency listings on its bourse, CEO Loh Boon Chye said during an interview at the Reuters NEXT conference on Tuesday, 9 July 2024.

When asked about the possibility of SGX opening up to crypto listings, Loh responded with a clear “not at the moment.” He claimed the conditions are not yet ripe for such a move, adding that there is a need for a sustainable ecosystem to support any new product launches, including cryptocurrencies.

Loh insisted that a sustainable ecosystem for crypto listings entails factors such as demand, governance, and structure. Until these elements are adequately established, SGX will refrain from incorporating cryptocurrency listings.

Asia Approves Spot Bitcoin ETFs After the US

The approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) earlier this year marked a significant milestone for the crypto industry, leading to similar moves globally.

Asia saw the launch of its first spot cryptocurrency ETFs in April, with the listing of six Bitcoin and Ether ETFs in Hong Kong. The inflows into crypto ETFs have played a role in driving Bitcoin and Ether to record highs this year, with both cryptocurrencies experiencing substantial gains.

However, Loh expressed his belief that the current ecosystem in Singapore is not ready for such crypto-based products. Despite this stance, he acknowledged that as time progresses and the ecosystem evolves, SGX, known for its innovation, may reconsider its position. Loh said, “You never say never.”

SGX has been facing pressure from institutional investors and industry groups to enhance its ability to attract listings of high-growth companies. The exchange has encountered challenges in this area due to a small base of retail investors, resulting in low liquidity and valuations.

While SGX has focused on building an Asian derivatives business and remains a global listing venue for real estate investment trusts, the demand for greater listings remains.

SGX reported a net profit of S$281.6 million ($208.70 million) in the first half of its 2024 financial year, representing a 1% decrease compared to the same period last year. As of June 2024, SGX had 623 listed securities with a combined market value of S$792.93 billion.

Singaporean Investors Embrace Cryptocurrency

A significant number of financially savvy individuals in Singapore have embraced cryptocurrency and view it as the future of finance, according to a recent report by Seedly and Coinbase.

The study, conducted in the fourth quarter of 2023 and involving over 2,000 adults, revealed that 57% of respondents currently hold digital assets.

The majority of those surveyed stated that they have invested amounts ranging from US$1,000 to $25,000 in cryptocurrencies.

EXPLORE: 8 Methods to Buy Bitcoin With PayPal Instantly in 2024 

Singapore has been actively trying to become a global crypto hub. Just recently, the Monetary Authority of Singapore (MAS) provided stablecoin issuer Paxos regulatory approval to issue stablecoins.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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