The central bank of Singapore or the Monetary Authority of Singapore (MAS) reminds the public of risks from trading cryptocurrencies, including Bitcoin. This warning comes after the market, which although relatively small there, has jumped significantly over the past year. Moreover, Bitcoin Cs isn’t suitable for retail investors.
MAS chairman Tharman Shanmugaratnam said cryptocurrencies are very unstable. It’s because the value of cryptocurrencies is usually not related to economic fundamentals.
“Therefore, they (bitcoin cs) are very risky as an investment product, and certainly not suitable for retail investors,” he said in response to parliamentary questions. Quoting from Bloomberg on Thursday (8/4/2021).
Tharman also said cryptocurrencies ashouldn’t sell to retail investors. MAS has the power to impose additional measures on digital token service providers. Whereby exchanges offering cryptocurrency trading are regulated as needed.
MAS Increases Oversight of the Crypto Sector
The comments of the senior minister and coordinating minister for Singapore’s social policy came as the total market value of cryptocurrencies surpassed US $ 2 trillion. It’s doubling in about two months amid surging institutional demand.
One of the steps MAS is taking is increasing surveillance of the crypto sector. It’s in order to identify suspicious networks and high-risk activity that may require further surveillance. MAS also continues to raise awareness about the risks of investing in digital assets to help people avoid fraud.
“The crypto asset space continues to grow,” said Tharman.
“MAS continues to monitor developments and will continue to adjust its rules as needed to ensure that regulations remain effective and commensurate with the risks posed. Investors, on their part, need to be very careful when trading cryptocurrencies.”