Janice R. Andrews
According to CEO Loh Boon Chye, Singapore Exchange (SGX) does not currently have any intentions to permit cryptocurrency listings on its exchange. Loh stressed that the current environment is not favourable for such a move while speaking at the Reuters NEXT conference in Singapore.
Present Position Regarding Crypto Listings
Loh clearly said, “Not at this moment,” in response to the question of whether SGX would consider listing cryptocurrency. He went on, saying that any new product introduction needs to be supported by a sustainable ecosystem. That actually indicates demand, which in turn indicates governance and structure.”
Loh made these remarks at a moment when major changes are occurring in the global cryptocurrency sector. The approval of U.S.-listed spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) earlier this year was a turning point that sparked similar initiatives globally. When six bitcoin and ether ETFs were listed in Hong Kong in April, Asia witnessed the debut of spot cryptocurrency ETFs.
Comparing and developing the market
Bitcoin has reached new highs this year as a result of the market’s massive influence from the entrance of cryptocurrency ETFs. The largest cryptocurrency in the world, bitcoin, has increased by around 35% so far, while ether has increased by more than 30% during the same time frame. Even with these developments throughout the world, Loh thinks Singapore’s environment isn’t quite ready for these kinds of products yet. “The ecosystem, I feel, at this point in time, is not ready for such products in Singapore,” he said.
Innovation and Prospects for the Future
Loh did not totally rule out the prospect of future cryptocurrency listings. “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 stated. This willingness to consider new ideas implies that SGX may change its mind when the market and legal landscape change.
Difficulties and Strategic Priorities
The small base of retail investors on SGX has made it difficult to attract listings of high-growth firms, which has resulted in low valuations and liquidity. To combat this, SGX continues to be a global listing venue for real estate investment trusts (REITs) and has established a robust Asian derivatives industry.
Revival of IPO Operations
Loh also talked about the topic of bringing back SGX initial public offerings (IPOs). His statement, “We have a healthy pipeline,” We are planning to offer secondary listings as one means for businesses to gain visibility. We’re going to have a simultaneous dual listing, fresh initial public offerings, and some businesses are already starting to prepare.”
Accounting Results
Notwithstanding the difficulties, SGX is putting up strong financial results. In the first half of its 2024 financial year, the group reported a net profit of S$281.6 million ($208.70 million), a minor reduction of 1% from the same period the previous year. 623 listed securities with a collective market value of S$792.93 billion were listed on the SGX as of the end of June.
Despite how quickly the global cryptocurrency market is developing, SGX is still hesitant to enter the fray. The statements made by CEO Loh Boon Chye emphasise how crucial it is to have a strong and long-lasting ecosystem before accepting cryptocurrency listings. Future cryptocurrency listings are still possible, pending market readiness and regulatory developments, as SGX keeps its focus on innovation and bolstering its core businesses.
