Singapore Exchange (SGX) Holds Back on Crypto Listings

Singapore Exchange (SGX) CEO Loh Boon Chye has declared that the exchange has no immediate plans to allow cryptocurrency listings. This decision, announced at the Reuters NEXT conference on July 9, 2024, is attributed to the lack of a mature ecosystem for crypto trading.

Loh emphasized the need for a robust structure encompassing demand, governance, and sustainable infrastructure before considering crypto listings. He acknowledged that while the current ecosystem isn't ready, SGX might reconsider its stance as the crypto landscape evolves.

A Look at Singapore's Crypto Landscape

The recent approval of spot Bitcoin ETFs in the US has spurred interest in the crypto space globally, including Asia. In April, Hong Kong saw the listing of six Bitcoin and Ether ETFs, attracting significant capital flows into the crypto market.

Despite this global trend, SGX remains cautious, citing the immaturity of the Singaporean crypto ecosystem. While the country is pushing to become a global crypto hub, with recent approvals for stablecoin issuances, the exchange believes the conditions are not yet ripe.

Pressure on SGX to Enhance Listings

SGX has been under pressure to attract listings from high-growth companies. A limited base of retail investors has hindered liquidity and valuations, posing challenges for the exchange.

Singaporean Investors Embracing Crypto

However, a Seedly and Coinbase study revealed that 57% of Singaporeans own digital assets, suggesting a significant appetite for crypto. The study also highlighted that investments range from US$1,000 to $25,000.

While SGX maintains its current stance, the future of crypto listings remains uncertain. The evolving regulatory landscape and growing investor interest could potentially influence SGX's future decisions.