Singapore’s Stance on Bitcoin ETFs
The Monetary Authority of Singapore (MAS) has recently stated that spot Bitcoin (BTC) ETFs will not be permitted for listing in Singapore for retail investors. According to a spokesperson for the MAS speaking to Lianhe Zaobao, this decision is based on the ineligibility of cryptocurrencies like Bitcoin as assets for ETFs under Singaporean regulations.
Despite the restriction on Bitcoin spot ETFs, retail investors in Singapore still have a means to access these investment products. Licensed capital market intermediaries authorized by the MAS to facilitate overseas market-related investments can assist in trading spot Bitcoin ETFs listed in other countries. These intermediaries are obliged to ensure adequate risk disclosure and carry out suitable client assessments to protect the interests of retail investors.
Regulatory Landscape for Retail Investors
The MAS spokesperson emphasized that retail investors in Singapore can engage in collective investment schemes (CIS) regulated by the Securities and Futures Act, including ETFs. However, assets like Bitcoin and other digital payment tokens are presently ineligible for retail CIS in Singapore due to their speculative and volatile nature.
The spokesperson advised caution for those retail investors trading Bitcoin ETFs in overseas markets, highlighting the associated risks. It is essential for retail investors to consider these risks carefully. Retail investors in Singapore are defined as individuals who do not fall under the categories of qualified investors or institutional investors according to the Securities and Futures Act.
