Singapore's important derivatives exchange will launch two latest cryptocurrency futures products this month, citing rising institutional interest in digital assets.
SGX Derivatives launches perpetual futures for Bitcoin (BTC) and Ether (ETH). These are financial derivative contracts that allow investors to bet on the spot price of the underlying asset without an expiration date.
In an announcement on Monday, SGX said it’s launching latest trading products to fulfill what it described as “rising institutional crypto demand, convergence of TradFi and crypto-native ecosystems.”
The perpetual contracts will begin trading on November twenty fourth. Perpetual futures are amongst essentially the most actively traded crypto derivatives globally and will change into a big latest income for SGX.
The contracts allow accredited and complex investors to trade the underlying assets without an expiration date. The offering is regulated by the Monetary Authority of Singapore (MAS).
SGX Bitcoin and Ether Perpetual Futures: Product Features. Source: SGX
This marks the launch of the second Bitcoin and Ether-based perpetual futures in Singapore. According to EDXM's announcement, the primary offering was launched on July 23 by EDXM International together with a complete of 44 trading products including Solana (SOL) and XRP (XRP) futures contracts.
Singapore continues cautious cryptocurrency adoption
Singapore has maintained a cautious regulatory stance because it expands its digital assets framework.
In April 2022, Singapore passed the Financial Services and Markets Act (FSM) bill, which supplies the MAS greater powers to control crypto firms operating outside the country but based in Singapore.
The MAS previously set a June 30 deadline for local crypto service providers to stop offering digital token (DT) services in foreign markets.
Under the policy, Singapore-based firms or individuals offering DT services outside the country were required to stop operations or obtain a license until the DTSP regulations got here into force.
Companies that violate the principles face fines of as much as 250,000 Singapore dollars (US$200,000) and prison sentences of up to a few years.
Cryptocurrencies are legal in Singapore, but should not considered legal tender. Instead, they’re classified as digital payment tokens (DPTs), securities or utilities depending on their characteristics.
Singapore ranks fifteenth in the worldwide cryptocurrency adoption index compiled by blockchain analytics firm Chainalysis.
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