Recent listings of spot Bitcoin exchange-traded funds (ETFs) in the United States have garnered significant market attention.
However, Singapore's financial regulatory authority prohibits such financial products from being listed in the country and targeting retail investors.
According to Singapore's regulator, the Monetary Authority of Singapore (MAS), cryptocurrencies like Bitcoin are not classified as eligible assets for ETFs.
Overseas Markets Allowed
Despite this restriction, capital market intermediaries licensed by the Monetary Authority of Singapore (MAS) can offer investments related to overseas markets.
They must ensure comprehensive risk disclosure and appropriate customer suitability assessments. This means that retail investors can still trade spot Bitcoin ETFs listed overseas through local brokerages.
An MAS spokesperson, responding to queries from the state media, stated that retail investors in Singapore can participate in Collective Investment Schemes (CIS) regulated under the Securities and Futures Act, including ETFs.
However, the types of assets they can invest in are limited.
Currently, Bitcoin and other digital payment tokens (DPT) are not qualified assets for retail CIS. Digital payment tokens are also known as cryptocurrencies in Singapore.
Protecting Retail Investors
Retail investors, also referred to as individual or non-institutional investors, refer to investors that operate independently, and are distinct from qualified or institutional investors.
According to the Securities and Futures Act, qualified investors are those with financial assets exceeding one million dollars, a minimum income of at least $300,000 in the last 12 months, or a net personal asset value exceeding two million dollars, with the main residence's value (excluding any mortgage) contributing a maximum of one million dollars.
To enhance investor protection and discourage speculative trading of cryptocurrencies by retail investors, the MAS recently conducted a public consultation on regulatory measures for the crypto industry.
The consultation results and new initiatives were released in two phases in July and November of the previous year.
The U.S. Securities and Exchange Commission (SEC) approved the listing of 11 spot Bitcoin ETFs for the first time on Wednesday, January 10.
Trading commenced the following day, with issuers including BlackRock, Fidelity, Invesco, and Ark Invest, the asset management firm under renowned investor Cathie Wood.
Swiss cryptocurrency investment company 21Shares also collaborated in the ETF issuance.