22nd October 2021 - 2 min read
Bursa Malaysia Bhd has stated that it is not planning to launch any cryptocurrency-based derivatives products in the immediate future.
According to a report by The Edge Markets, the local bourse regulator and operator had shared the detail with them via an emailed statement. “While Bursa Malaysia is always looking for opportunities to offer interesting investment products to the market, we do not have any immediate plans to launch cryptocurrency-based derivatives products,” it said without elaborating further on the matter.
Prior to that, The Edge had reached out to Bursa Malaysia to ask about the possibilities of launching cryptocurrency-based derivatives products following the recent debut of the ProShares Bitcoin Strategy ETF (BITO) on the New York Stock Exchange (NYSE). Briefly, BITO trades in futures contracts that are tied to Bitcoin, which essentially means that the assets are transacted based on a predetermined future price of the cryptocurrency.
Aside from its significance as a pioneering product, the launch of BITO on NYSE is also noteworthy as it means conventional investors will now have easier access to Bitcoin via a more familiar channel: brokerage accounts. They will not need to go through the hassle of signing up with a cryptocurrency exchange platform or worry about being subjected to additional security risks.
Meanwhile, the Malaysian cryptocurrency trading landscape has four digital asset exchanges (DAX) that are approved by the Securities Commission Malaysia (SC), namely Luno Malaysia, MX Global, SINEGY Technologies, and Tokenize Technology. Malaysian investors are not highly discouraged from investing in cryptocurrencies via unlicenced DAX, with the SC having previously taken action or cautioned against popular channels such as Binance and KuCoin.
(Source: The Edge Markets)
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world
Comments (0)