The Monetary Authority of Singapore (MAS) has decided against introducing a spot bitcoin-ETF for retail investors.
This choice is justified by the fact that bitcoin and other cryptocurrencies are deemed unsuitable assets.
According to MAS, trading cryptocurrencies involves a high level of speculation and is not appropriate for retail investors:
"Bitcoin is not an ideal candidate for ETFs. The trading of crypto assets is rife with speculation. Therefore, we advise caution to those engaging in foreign market trading."
It is worth noting that the President of the Republic, Tharman Shanmugaratnam, previously made a similar statement. Additionally, a Singapore court recognized cryptocurrencies as property in a case involving the crypto exchange #Bybit.
Despite these restrictions, MAS does not prohibit retail investors from participating in overseas-listed #exchange-traded funds. To do so, they can seek assistance from licensed intermediaries authorized by MAS to manage investments. However, these intermediaries must conduct client assessments and provide risk disclosures, as stated by MAS.
In Singapore, retail investors refer to individuals who are not classified as qualified or institutional investors under the Securities and Futures Act.
As a reminder, MAS granted a license to cryptocurrency exchange #Coinbase in October 2023 to offer services in Singapore. Furthermore, cryptocurrency custodian #BitGo obtained a license to operate in the country in January 2024.
