SGX CEO Loh Boon Chye Emphasizes Caution in Cryptocurrency Listings

Singapore Exchange (SGX), the largest and most prominent stock exchange in Singapore, is carefully evaluating the conditions necessary for cryptocurrency listings on its platform.

Singapore Exchange (SGX) CEO Loh Boon Chye has shared his insights on whether Singapore’s largest stock exchange will offer crypto-based listings. The executive emphasizes the need for a sustainable ecosystem, stating: “That really means demand, that really means governance, that really means structure.” Despite global trends and institutional pressure, Loh asserts that current conditions are not favorable for such listings in Singapore.

SGX CEO Loh Boon Chye has shared his views on the possibility of cryptocurrency listings on the Singapore Exchange (SGX). Speaking in an interview at the Reuters NEXT conference on Wednesday, the CEO stated that the exchange is taking a cautious approach to such listings.

When asked about the potential for crypto listings, Loh replied, “Not at the moment.” He added:

The ecosystem, I feel, at this point in time, is not ready for such products in Singapore. I think for any new product launches, it’s important for this to have a sustainable ecosystem support … That really means demand, that really means governance, that really means structure.

The U.S. Securities and Exchange Commission (SEC) approved U.S.-listed spot bitcoin exchange-traded funds (ETFs) earlier this year, marking a significant milestone for the crypto industry and triggering similar developments worldwide. In April, Asia introduced its first spot cryptocurrency ETFs with bitcoin and ether ETFs listed in Hong Kong.

The U.S. securities watchdog is currently in the process of approving spot ether ETFs. Having approved Form 14B-4 for eight issuers in May, the regulator is now working with issuers on registration statements before the funds can launch.

SGX has been under pressure from institutional investors and industry groups to attract listings of high-growth companies. The exchange faces challenges related to low liquidity and valuations due to a limited base of retail investors. Despite these issues, SGX has built a strong Asian derivatives business and remains a global listing venue for real estate investment trusts. In the first half of its 2024 financial year, SGX reported a net profit of S$281.6 million ($208.70 million), a 1% decrease from the previous year. By the end of June, SGX had 623 listed securities with a combined market value of S$792.93 billion.

While acknowledging the current limitations, SGX remains open to future possibilities of crypto listings as the ecosystem evolves, Loh remarked, elaborating:

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.

What are your thoughts on SGX’s cautious approach to cryptocurrency listings? Let us know in the comments section below.

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