SGX CEO: No Plans for Crypto Listings

CEO Loh Boon Chye stated Tuesday that conditions are not yet right for Singapore Exchange to list cryptocurrencies

When asked whether SGX would be receptive to crypto listings, Loh responded, “Not at this time,” during an interview at the Reuters NEXT conference in Singapore.

“I think for any new product launches, this needs sustainable ecosystem support,” he said. “That means demand, that means governance, that means structure.”

This year, the U.S. Securities and Exchange Commission approved U.S.-listed spot bitcoin exchange-traded funds (ETFs), a significant milestone for the crypto industry, and inspired similar actions on a global scale.

In April, six bitcoin and ether ETFs were listed in Hong Kong, marking the first time that Asia had cryptocurrency ETFs.
This year, bitcoin has reached record highs due to the inflow of crypto ETFs, which has resulted in a nearly 35% increase in the world’s largest cryptocurrency. In the same time frame, the value of ether has increased by more than 30%.

“The ecosystem, I feel, at this point, is not ready for such products in Singapore,” according to Loh.

“You never say never; as time evolves, and as the ecosystem comes together, we are always known to be the world’s most innovative exchange or platform.”

SGX has been under pressure from institutional investors and industry groups to address the chronic challenge of attracting high-growth companies to list.

Low liquidity and valuations have been a challenge for SGX, constrained by a limited number of retail investors. It has established an Asian derivatives business and continues to serve as a global listing venue for real estate investment trusts.

Loh stated, “We have a healthy pipeline,” in response to a query regarding the SGX’s intentions to revive initial public offerings (IPOs).

“We have secondary listings in the pipeline, which is one way companies can gain exposure.” We are currently in the process of preparing for new IPOs, and we will be conducting a simultaneous dual listing, he stated.

In the first half of its 2024 financial year, the group reported a net profit of S$281.6 million ($208.70 million), representing a 1% decrease from the same period in the previous year. SGX had 623 listed securities with a combined market value of S$792.93 billion as of the end of June.