Singapore Exchange (SGX) Will Not Approve Any Listing Related to Crypto Anytime Soon

The CEO of Singapore's primary bourse has said that current conditions are not ripe for the exchange to list any crypto products.

Singapore Exchange (SGX) will not approve any listing related to crypto anytime soon. According to CEO Loh Boon, SGX is not ready to list crypto products because current conditions are unsuitable.

Speaking in Singapore at the Reuters NEXT conference on Thursday, he said:

“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.”

In response to a question about the bourse accepting crypto listings, Boon said “not at the moment.” The CEO said he believes that the ecosystem in Singapore is simply not ready for such products. However, he said it’s possible that things change as time goes on.

“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,” he added.

The Singapore exchange posted a net profit of $208.7 million (S$281.6 million) for the first half of the 2024 financial year, a 1% plunge from the first half of the previous year. As of the end of June, SGX had a combined market value of S$792.93 billion across its listed securities.

Authorities in Singapore have been expanding cryptocurrency regulations and making deliberate efforts to sanitize the country’s crypto sector. For instance, the Monetary Authority of Singapore (MAS) announced an amendment to the Payment Service Act and subsidiary laws in April. The amendment seeks to expand the range of payment services subject to regulations to include crypto. Effective April 4, all Digital Payment Token (DPT) service providers, especially those involved in the transfer or exchange of tokens, must adhere to user protection and financial stability requirements.

Early this month, authorities also warned about the exploitation of digital payment systems by criminals and terrorist groups for terrorism financing (TF). An assessment jointly conducted by the Ministry of Finance, Ministry of Home Affairs, and MAS concluded that the risk level for this type of transaction via DPTs rose from medium-high to medium-low. Interestingly, the report noted that there are no known cases of terrorism financing involving DPTs. Nonetheless, the report stated that “Singapore is cognisant of the higher TF risks originating from the increasing presence of DPT service providers.”

While the country is wary of the illegal use of cryptocurrency, Singapore recently approved blockchain technology firm Paxos, allowing the company to offer DPT services through its local entity, Paxos Digital Singapore Pte Ltd. In essence, Paxos is now able to issue stablecoins in Singapore.

According to Paxos’ official announcement, Singapore’s DBS Bank will serve as the primary banking partner for custody of the stablecoin reserves and cash management. DBS is the largest bank in Southeast Asia by assets.

Separately, MAS has also granted crypto-exchange OKX an in-principle approval to conduct a payments license business in the country. OKX will now be able to provide DPT and cross-border fund transfer services in Singapore, a market the exchange has described as “priority.”

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