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SGX Has No Immediate Plans to Allow Cryptocurrency Listings, CEO Says
Article 1 of 2 Singapore Exchange CEO Loh Boon Chye speaks at the Reuters NEXT conference in Singapore on July 9, 2024. REUTERS/Ore Huiying
[1/2]Singapore Exchange CEO Loh Boon Chye speaks at the Reuters NEXT conference in Singapore on July 9, 2024. REUTERS/Ore Huiying Buy License RightsNew Tab, opens a new tabSINGAPORE, July 9 (Reuters) – Singapore Exchange (SGX) (SGXL.SI)New tab, opens a new tab has no immediate plans to allow cryptocurrencies to be listed on an exchange, CEO Loh Boon Chye said Tuesday, adding that conditions are not yet ripe for such a move.
Interviewed at the Reuters NEXT conference in Singapore, Loh said “not at the moment” when asked whether SGX would be open to cryptocurrency listings.
“I think for any new product launch, it’s important that it has a sustainable ecosystem support,” he said. “That really means demand, that really means governance, that really means structure.”
This year’s U.S. Securities and Exchange Commission approval of U.S.-listed stocks bitcoin spot exchange traded funds (ETFs) marked a watershed moment for the cryptocurrency industry and sparked similar moves globally. Asia got its first spot cryptocurrency ETFs April with the listing of six bitcoin and ether ETFs in Hong Kong. Crypto ETF inflows have helped catapult bitcoin to record highs this year, with the world’s largest cryptocurrency up nearly 35% to date. Ether has grown more than 30% over the same period.
“I think the Singapore ecosystem, at this point in time, is not ready for such products,” Loh said.
“You never know, as time evolves and the ecosystem consolidates, we will always be recognized as the most innovative platform or exchange in the world.”
SGX has come under pressure from institutional investors and industry groups to improve what has been a chronic challenge: attracting listings of high-growth companies.
Crippled by a small retail investor base, SGX has struggled with low liquidity and valuations. It has built an Asian derivatives business and remains a global listing venue for real estate investment trusts.
Responding to a question about how SGX plans to relaunch initial public offerings (IPOs), Loh said: “We have a strong pipeline.”
“Secondary listings are a way for companies to get exposure; we have that in the pipeline. We have new IPOs, some companies are really gearing up, and … we’re going to have a simultaneous dual listing,” he said.
The group posted a net profit of S$281.6 million ($208.70 million) in the first half of the 2024 financial year, down 1% from the same period a year earlier. As of the end of June, SGX had 623 listed stocks with a total market value of S$792.93 billion.
To watch the live broadcast of the World Stage go to the Reuters NEXT news page: https://www.reuters.com/world/live-video-reuters-next-apac-2024-07-09/
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Reportage by Ankur Banerjee, Vidya Ranganathan and Rae Wee; Review by Christopher Cushing
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