The Monetary Authority of Singapore, the local financial regulator, has warned the public to exercise extreme caution when investing in cryptocurrencies. This comes as the prices of cryptocurrencies have skyrocketed in recent weeks, prompting the Monetary Authority to warn investors that they do not represent legal tender and do not have any underlying asset. Furthermore, the recent price surges in cryptocurrencies are largely due to speculation, causing the high risk of sharp price drops. The MAS therefore advises investors to exercise extreme caution when investing in cryptocurrencies.
While the Monetary Authority of Singapore has taken steps to regulate the digital assets market, there have been a number of recent meltdowns that have led to the sudden decline of many cryptocurrencies. As a result, MAS has issued strict guidelines to avoid such risks. For example, digital payment token service providers should not promote crypto trading to the public without a license. Furthermore, the Monetary Authority of Singapore has also enacted legislation to make it easier for regulators to monitor and regulate these digital assets.
Keat also pointed to the high risk associated with cryptoassets. Earlier this year, the TerraUSD cryptocurrency reached US$120, causing a meltdown in its price. This led to a cascading effect on the value of other cryptocurrencies, and prompted the authorities to warn investors against investing in such a risky asset. In addition, Keat noted that cryptoassets have changed the finance industry and that the government needed to regulate the industry more closely to ensure financial stability.
Despite the emergence of digital payments, the Monetary Authority of Singapore has warned consumers against speculative trading in cryptocurrencies. This is because digital assets are subject to sharp speculative swings. Therefore, it is not appropriate for the general public. Singapore has also instructed cryptocurrency service providers to refrain from advertising their services in public places. Moreover, they must refrain from engaging social influencers in advertisements of their DPT services.
As the Malaysian stock exchange has recently lost almost four thousand Bitcoins – worth 5.5 billion won – in a cyber-attack, the Monetary Authority of Singapore is warning the public to be cautious when it comes to investing in cryptocurrency. The central bank is encouraging its citizens to report suspicious cryptocurrency investments to the authorities and to ensure their safety. Further, it has advised cryptocurrency users to review the claims made about their products to ensure that they are appropriate for them.
MoneySENSE has issued consumer alerts on cryptocurrencies in Singapore, including information about the risks of trading in cryptocurrencies. The authorities recommend that investors avoid cryptocurrencies, and instead focus on traditional assets such as property. Moreover, cryptocurrencies are not securities and are not regulated by the MAS. They are not regulated, so they are not covered by the authorities’ regulations. If you lose money, you should avoid cryptocurrencies, and seek legal advice before investing in them.
