The Monetary Authority of Singapore (MAS) has warned of the high risks and dangers of investing in crypto assets due to the high volatility of the cryptocurrency market.
MAS Chairman Tharman Shanmugaratnam warned of the inherent risks associated with speculation in the cryptocurrency industry and stated that the value of cryptoassets is not related to any underlying factors. Shanmugaratnam noted that retail investors should stay away from such investments.
“Cryptocurrencies can be very volatile as their value is usually not tied to any underlying economic indicators. Therefore, they are very risky as investment products and are definitely not suitable for retail investors, ”he said.
A few days earlier, Singapore Prime Minister Lee Hsien Loong urged citizens to remain vigilant when it comes to investing in cryptocurrencies. The prime minister claimed that someone created a profile on the BitClout platform on his behalf to sell tokens using information from his Twitter account.
The MAS chairman said the regulator will continue to closely monitor the development of cryptocurrencies and try to bring regulatory requirements in line with technical progress.
“The cryptoasset industry is constantly evolving. MAS is closely following developments and will continue to adapt its rules as necessary to ensure that regulation remains effective and proportionate to emerging risks. Investors, for their part, need to exercise extreme caution when trading cryptocurrencies, ”Shanmugaratnam said.
As a reminder, the Singapore Stock Exchange has added cryptocurrency indices.
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