MAS, the Monetary Authority of Singapore, is a main financial regulator in the country. Recently they have decided to allow the purchase of cryptocurrency derivatives on certified exchanges, for instance: The Asia Pacific Exchange (APEX), Singapore Exchange Derivatives (SGX), and ICE Future; according to a consultation paper released by them on Wednesday, November 20th, 2019.
MAS will be regulating these activities under the Securities and Futures Act from now on. Their say on this decision is as such: “For Institutional investors to gain and hedge, their exposure to the payment tokens.” Nevertheless, they do not see crypto token derivatives as suitable for trade, by retail investors. What was also mentioned by the regulator is that the tokens have little to none intrinsic value and a substantial price volatility.
Lastly, the crypto derivatives will come at a higher cost to retail investors. As stated in the report by The Business Times: “1.5x the standard amount of margin required for contracts offered by the approved exchanges, subject to a floor of 50 per cent.” this price will be set for retail investors, come June 30th next year. More information can be found here.