Singapore Exchange CEO Confirms There are No Immediate Plans for Any Crypto Listings
Jul 26, 2024
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SINGAPORE (per Reuters) – Singapore Exchange (SGX) has confirmed that it has no immediate plans to add any cryptocurrency listings among its other trusted securities and derivatives that have so far built it a reputation as one of Asia’s leading exchanges. The message was provided via SGX’s CEO, Loh Boon Chye, who articulated that the exchange conglomerate did not currently feel that now was the right time for such a move.
With crypto trading now more popular around the world than ever before, the proliferation of new coins has everyone from seasoned traders to novice investors looking for the next big thing in crypto. According to crypto writer Jiyoung Kim’s 신규 코인 가이드, the variety of niches out there now has considerably broadened the market. As a result, many investors seeking an edge are looking to exchanges around the world for news of any new listings that could result in a significant upturn in any digital assets they may have an interest in.
Unfortunately for anyone following SGX for such news, during an interview at the Reuters NEXT conference in Singapore, SGX’s CEO was very clear that there are no plans “at the moment” for any crypto listings of any kind by the exchange.
He was also quoted as saying, “I think for any new product launches, it’s important for this to have a sustainable ecosystem support. That really means demand, that really means governance, that really means structure.”
The U.S. SEC’s approval earlier this year of the US-listed spot exchange-traded funds (ETFs) for Bitcoin signified a defining moment for the global crypto industry at large. Unsurprisingly, as it often goes when the world’s most prominent economy makes a significant move, the Bitcoin ETFs began a ripple effect of similar moves that began sweeping across the globe. While cryptocurrency swings can happen for a variety of reasons spanning everything from new technological advancements to political decisions, a major listing is one move that’s always likely to have a positive effect.
When it came to Asia, the first spot cryptocurrency ETFs came through April via six Bitcoin and Ether ETFs that were approved in Hong Kong—again highlighting the region’s more progressive attitudes toward cryptocurrency. Those are, of course, in sharp contrast to mainland China where cryptocurrencies and crypto trading have been banned for years now, with crackdowns including detainments and even jail time being imposed on people working in the sector.
Earlier this year, largely helped in part by the ETFs, Bitcoin’s price soared to record highs before plunging again somewhat last month. However, the lesson to come out of it all was just how much spot ETFs can shift the market around a particular token in a short space of time, leading to massive gains for investors savvy enough to have skin in the game when it happens.
Similarly, Ether rose over 30% in the same period with Solana also awaiting an SEC decision on its own ETF plans. Despite all of this going on in the States and elsewhere, Loh was still adamant that he did not believe now was the right time for any similar moves by SGX. However, he did also leave the door open for a possible crypto listing in the future.
“You never say never, as time evolves, and as the ecosystem comes together, we are always known to be the most innovative exchange or platform in the world.”
Like other exchanges that have gone through similar issues, SGX faces mounting pressure from institutional investors to bring in more economically flourishing companies that have demonstrably high growth rates. Among its relatively mediocre base of retail investors, STX has faced liquidity issues, though it has amassed a range of Asian derivatives and is still considered a great destination for prime real estate investment trusts.
With new IPOs and an apparent “dual listing” in the pipeline, SGX may not be moving on the question of a crypto listing for now, but does seem to be headed in the right direction. Having posted a handsome profit of $208.70 million during the first half of the 2024 fiscal year, by the end of June, SGX’s listed securities provided a combined market value of S$792.93 billion.
As the adoption of cryptocurrencies grows more widespread, now seeing regular use in everything from online casinos to major eCommerce sites, it seems SGX may not want to dally too long before moving on the crypto buzz too. Around the world, cryptocurrencies and other digital assets are now being viewed as a great way to diversify investment holdings. Time will tell if all the hype was well-placed.