Bitcoin

<p>In a contrasting move to the recent approval of several spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), regulators in both Singapore and Thailand have turned down permission to list spot bitcoin ETFs.</p><h2 id="header-0">Bitcoin not a qualified asset</h2><p>According to local news <a href="https://www.zaobao.com.sg/finance/singapore/story20240117-1462706" rel="noopener noreferrer nofollow">media</a> on Wednesday, Singapore’s Monetary Authority (MAS) has announced its decision not to permit the listing of spot ETFs in the country. The MAS argues that cryptocurrencies, including bitcoin, do not meet the criteria for qualified assets within the context of ETFs.</p><p>This regulatory divergence means that retail investors in Singapore won’t see the introduction of spot bitcoin ETFs domestically. However, they still have an avenue to trade such ETFs as they can turn to local brokerages for access to overseas markets. Despite this allowance, the MAS emphasizes the need for these retail investors to exercise caution due to the inherent high volatility and speculative nature of cryptocurrency trading.</p><p>A spokesperson from the regulatory authority clarified that while collected investment schemes (CIS), falling under the Securities and Futures Act regulation, include ETFs, they do not encompass bitcoin or any other cryptocurrency.</p><h2 id="header-1">Future potential</h2><p>While MAS may be turning down spot bitcoin ETFs at this point, there’s potential for a change of heart in the future. The FIMA Bill is currently working its way through the city-state’s legislative process. If enacted, it would give broader regulatory oversight of crypto to MAS. Lasanka Perera, CEO of Independent Reserve Singapore, recently <a href="https://coinnesslive.page.link/KTDmEMC8hW94uHSY9" rel="noopener noreferrer nofollow">suggested</a> that the bill could make an ETF more likely.</p><h2 id="header-2">Thailand says no</h2><p>Meanwhile, Thailand’s Securities and Exchange Commission (SEC) has <a href="https://www.bangkokpost.com/business/general/2725447/regulator-nixes-launch-of-bitcoin-etfs" rel="noopener noreferrer nofollow">stated</a> that it currently does not plan to allow asset management firms to launch spot bitcoin ETFs in the country.</p><p>Thai securities brokerage firms have been encouraging investors to consider investing directly in U.S. spot bitcoin ETFs. The Thai SEC clarified that while it closely monitors these developments, there is no immediate policy to allow spot bitcoin ETFs in Thailand. The regulator emphasizes that Thai investors can still engage in digital asset investments through domestic exchanges licensed by the SEC under the Digital Assets Decree.</p><p>India, too, doesn’t appear to have been looking favorably on the potential for such products. The governor of the Reserve Bank of India (RBI) <a href="https://coinnesslive.page.link/hijy488D164e7HbX7" rel="noopener noreferrer nofollow">said</a> last week that “the way we look at crypto remains unchanged, irrespective of who does what.”</p><h2 id="header-3">Asian optimism</h2><p>In the wake of ETF approval in the U.S., many industry commentators had suggested that Asia would respond positively. Australian venture capitalist Mark Carnegie has <a href="https://coinnesslive.page.link/2EBkVH6Cshaw6Bom8" rel="noopener noreferrer nofollow">suggested</a> that the developing bull market would be “an Asian story.”</p><p>Yat Siu, co-founder of Hong Kong’s Animoca Brands, <a href="https://coinnesslive.page.link/fyToaSxFRJQt8sR18" rel="noopener noreferrer nofollow">expressed</a> the view that U.S. ETF approval would have a substantially positive impact within the Asian region. Hong Kong appears to be the most positive in the region in its outlook with regard to embracing spot bitcoin ETFs. Immediately following approval in the U.S., a Hong Kong legislator <a href="https://coinnesslive.page.link/bMUD8iJk8EAsddqb8" rel="noopener noreferrer nofollow">spoke out</a> to encourage a proactive response relative to launch of similar products within the Chinese autonomous territory.</p><p>Meanwhile, recent news reports indicate that spot bitcoin ETFs experienced substantial trading volume, accumulating $10 billion just three days after their approval in the U.S.</p>

Two Asian nations turn down spot bitcoin ETFs

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