Singapore Strikes Out Spot Bitcoin ETFs for Retail Investors

• Singaporean retail investors may still participate in Spot Bitcoin ETFs listed elsewhere.
• The regulatory body also cautioned those buying Bitcoin ETFs in foreign markets.

After receiving clearance from the U.S SEC, Spot Bitcoin ETFs have lately gained immense market interest. However, retail investors cannot purchase Spot Bitcoin ETFs due to a ban imposed by the Monetary Authority of Singapore (MAS). The regulatory body has banned listing of Spot Bitcoin ETFs in the nation.

Bitcoin and other cryptocurrencies are not allowed to be assets in exchange-traded funds (ETFs), according to the Singapore MAS. A representative from the Singapore Monetary Authority (MAS) commented on the matter, saying that retail investors should stay away from cryptocurrency trading due to its extreme volatility and speculative character.

Cautioned over Investing in Bitcoin ETFs

Even if there are limitations, Singaporean retail investors may still participate in Spot Bitcoin ETFs listed elsewhere. Retail investors may work with intermediaries that have a HKMA authorization to participate in foreign markets.

In contrast, ETFs and other Collective Investment Schemes (CIS) accessible to retail investors in Singapore are governed by the Securities and Futures Act. Their investment options are limited, however, and digital payment tokens like Bitcoin aren’t one of them just yet.

According to a report by the Singaporean news platform Lianhe Zaobao, they also cautioned those buying Bitcoin ETFs in foreign markets.

Additionally, the Hong Kong Monetary Authority contemplated adopting a policy similar to Singapore’s strict stance on cryptocurrency in an attempt to strengthen safeguards for investors and deter retail speculators. It kicked off a public consultation over crypto sector regulation.

Two parts, one in July and the other in November of last year, included the findings and the new metrics. In addition, the public review’s findings would be influential since Hong Kong is planning to implement stricter crypto legislation. 

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