Today the Monetary Authority of Singapore (MAS)
announced a consultation to consider the regulation of derivatives based on “payment tokens” such as Bitcoin and Ether, where the derivatives are traded on Approved Exchanges.
The purpose of the potential regulation is to have sufficient oversight to prevent systemic risks to the broader financial system in case something goes wrong on one of the Approved Exchanges. MAS will allow crypto derivatives trading outside of these exchanges because it believes the volumes do not currently present a systemic risk.
There are
four Approved Exchanges: The Singapore Exchange (SGX) which has separate securities and derivatives exchanges, Asia Pacific Exchange, and ICE Futures Singapore. The U.S. crypto derivatives platform
BAKKT was founded by ICE, and last week Coindesk reported that ICE Singapore is discussing listing cash Bitcoin futures with MAS. This might be the trigger for the consultation.
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