The CEO of Singapore’s main stock exchange said the current environment isn’t ready for crypto listings.
We aren’t there yet
Loh Boon, the head of the Singapore Exchange, the SGX, shared that launching any new product, including cryptocurrencies, requires a solid ecosystem, and three factors are neccesary, demand, proper governance, and a strong structure.
Boon mentioned that at the moment, SGX has no plans to accept crypto listings.
He believes Singapore’s market isn’t yet prepared for such products but noted that of course, the situation can change in the future.
Boon also emphasized SGX’s reputation for being an innovative exchange, leaving the door open for future developments.
The Monetary Authority of Singapore amended the Payment Service Act in April this year to include more payment services, such as cryptocurrencies, under its regulations.
From April 4, all Digital Payment Token service providers involved in transferring or exchanging tokens must meet user protection and financial stability requirements, just like any other traditional service on the market.
Risks everywhere
Earlier this month, Singaporean authorities warned about the risk of digital payment systems being used for criminal activities, including terrorism financing.
A joint assessment by the Ministry of Finance, Ministry of Home Affairs, and MAS found that the risk level for such activities using DPTs had changed from medium-high to medium-low.
They admitted there have been no known cases of terrorism financing involving DPTs, the report highlighted the potential risks due to the growing number of DPT service providers.
Business is business. And tax-revenue.
Despite these concerns, Singapore is friendly towards the industry’s participants, and approved Paxos, a blockchain technology firm, to offer DPT services through its local entity, Paxos Digital Singapore.
This approval allows Paxos to issue stablecoins in Singapore, and the DBS Bank, the largest bank in Southeast Asia by assets, will be the primary banking partner for managing the stablecoin reserves and cash.
MAS also granted in-principle approval to crypto exchange OKX to conduct a payments license business in the country. OKX can now offer DPT and cross-border fund transfer services in Singapore, which it considers a priority market.
