SGX Eyes Crypto Perpetual Futures for Institutional Investors Amid Regulatory Review

Singapore Exchange (SGX) is reportedly preparing to introduce cryptocurrency perpetual futures contracts, targeting institutional investors, subject to regulatory approval from the Monetary Authority of Singapore (MAS) [1]. The initiative is being driven by increasing demand from professional investors in the digital asset space and aims to provide a regulated framework for trading crypto derivatives [2]. The exchange has emphasized that these products will not be available to retail investors, due to the complexity and volatility of cryptocurrency markets [3].

The proposed perpetual futures would allow institutional clients to gain exposure to major cryptocurrencies without directly holding the underlying assets, potentially enhancing liquidity and market depth [2]. While the exact timeline for the product launch has not been confirmed, reports suggest the initiative may progress by the end of 2023 [1]. If launched, the product will be the latest step in SGX’s broader strategy to expand into crypto-related financial instruments [3].

The move aligns with a growing trend among global exchanges to integrate cryptocurrency derivatives into their offerings, despite ongoing regulatory scrutiny in various jurisdictions [3]. Analysts suggest that the introduction of crypto perpetual futures could serve as a foundation for further innovation in the sector, although specific details such as eligible cryptocurrencies and margin requirements have yet to be disclosed [1].

Regulatory clarity is a central factor in the product’s development, with MAS maintaining a strict stance that digital payment token services should be limited to professional investors [2]. This approach reflects a global trend to protect retail investors while supporting institutional participation in crypto markets [3]. Should the product be approved, SGX is expected to closely collaborate with regulators to ensure compliance and investor protection standards are maintained [2].

The institutional focus of the initiative underscores the evolving landscape of digital asset trading, where major exchanges are increasingly aligning with regulatory expectations while catering to sophisticated investors [3]. The outcome of SGX’s proposal will be closely watched by both market participants and regulators, with potential implications for the broader adoption of institutional-grade crypto products in Asia [1].

Source:

[1] Binance – [https://www.binance.com/en/square/post/28157****75897](https://www.binance.com/en/square/post/28157****75897)

[2] CryptoPanic – [https://cryptopanic.com/news/24096798/SGX-Plans-Cryptocurrency-Perpetual-Futures-for-Institutional-Investors](https://cryptopanic.com/news/24096798/SGX-Plans-Cryptocurrency-Perpetual-Futures-for-Institutional-Investors)

[3] Moomoo – [https://www.moomoo.com/hans/news/flash/20875282/the-stock-exchange-plans-to-list-a-cryptocurrency-perpetual-futures](https://www.moomoo.com/hans/news/flash/20875282/the-stock-exchange-plans-to-list-a-cryptocurrency-perpetual-futures)