Singapore Warns Public Of Cryptocurrency Risks

Singapore again this week warned the public about the risks of trading Bitcoin and other cryptocurrencies. Although the size of the Singapore cryptocurrency market is relatively small, its importance has risen sharply in the past year. In response to a question from Parliament, Tharman Shanmugaratnam, Director of the Monetary Authority of Singapore, said on Monday: “Cryptocurrencies can be very unstable because their value is usually not related to any economic fundamentals. Therefore, they are risky as investment products. Very high, certainly not suitable for retail investors.”

He stated that Singapore does not allow cryptocurrency funds to be sold to retail investors. The Monetary Authority of Singapore also has the right to impose additional measures on digital token service providers when necessary to supervise platforms that provide cryptocurrency trading services. Shan Daman is also the Minister of State Coordinator and Social Policy Coordination of Singapore.

Shandaman’s warning comes at a time when the global market value of cryptocurrencies exceeds 2 trillion US dollars for the first time. Against the background of soaring institutional demand, the market value of cryptocurrencies has doubled in about two months.

Read More: Man Lost $1 Million Bitcoin Savings Due To Apple AppStore Fake App

Shandaman said that compared with stocks and bonds, Singapore’s cryptocurrency trading scale is still small, and the sum of the highest daily trading volume of Bitcoin, Ethereum and XRP is only equivalent to 2 of the average daily trading volume of major stock exchanges last year. %.

Shandaman also said that the Singaporean authorities have stepped up their efforts to combat money laundering and terrorist financing risks associated with cryptocurrencies.

Read This: Morgan Stanley Mulling To Acquire Shares In South Korean Cryptocurrency Exchange Bithumb

He said that among the measures that have been taken, the Monetary Authority of Singapore has strengthened its oversight of the encryption sector to identify suspicious networks and high-risk activities that may require further review. He said that the agency is continuing to raise awareness of the risks of investing in digital assets to help people avoid being deceived or exploited.

Shang Daman said: “The field of encrypted assets is constantly evolving. The HKMA has been closely monitoring developments and will continue to adjust its rules as necessary to ensure that the supervision remains effective and commensurate with the risks posed. As far as investors are concerned, , They should be extremely cautious when trading cryptocurrencies.”