The Monetary Authority of Singapore (MAS) has launched 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 Singapore regulator is seeking feedback from market participants in order 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 said it will allow crypto derivatives trading outside of these exchanges because it believes the volumes do not currently present a systemic risk. The watchdog’s proposed changes to regulate payment token derivatives traded on approved exchanges and to regulat