Singapore’s financial regulator has proposed that cryptocurrency derivatives trading should be approved on domestic exchanges, according to BNN Bloomberg.
The proposal states that trading of derivatives on Bitcoin and Ethereum will need to comply with the Securities and Futures Act.
The decision from Singapore seems to be following the lead of the USA, which currently has Bitcoin futures markets on Bakkt, CME, and CBOE.
Bakkt offers physically-settled Bitcoin futures while the CME and CBOE markets remain cash-settled.
ICE Futures, which is the driving force behind Bakkt, aims to launch a cash-settled futures market in Singapore on December 9.
Derivatives markets like BitMEX are currently the most popular cryptocurrency trading venues, with volume regularly surpassing $5 billion per day and beating spot volume substantially.
However, concerns remain in regards to cryptocurrency’s staggering volatility. The Monetary Authority Of Singapore recommends that traders of crypto derivatives use 50% of the available margin and that it is “not suitable for most retail investors”.
“Retail investors are strongly advised not to trade in payment token derivatives, and even if they choose to do so, should exercise utmost caution,” the statement reads.
For more news, guides, and cryptocurrency analysis, click here.
Singapore, Singapore, 19th September 2024, Chainwire
Grand Cayman, Cayman Islands, 12th September 2024, Chainwire
Warsaw, Poland, 20th August 2024, Chainwire
Singapore, Singapore, 20th August 2024, Chainwire
Grand Cayman, Cayman Islands, 26th July 2024, Chainwire
As usual, the crypto market is keeping everyone guessing what could happen next. After an…