The Monetary Authority of Singapore issued a notice to would-be Bitcoin and cryptocurrency investors, warning them of the dangers of engaging with such a volatile market. The warning came just 48 hours after Prime Minister of Singapore Lee Hsien Loong had his likeness appropriated by a user on the BitClout social token platform, who used the PM’s name to sell tokens worth a near combined $10,000.
The authority warned of the inherent risks involved in speculating in the cryptocurrency space.
The chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, warned of the inherent risks involved in speculating in the cryptocurrency space, asserting that their value was not tied to any underlying fundamentals. Shanmugaratnam said retail investors should stay away. “Cryptocurrencies can be highly volatile, as their value is typically not related to any economic fundamentals. Hence, they are highly risky as investment products and certainly not suitable for retail investors,” the chairman added, as reported by Bloomberg.
Singaporean Prime Minister had also warned about crypto scams.
Earlier, Singaporean Prime Minister Loong had warned citizens to remain vigilant regarding cryptocurrency investing after tokens were minted bearing his name, likeness, and social media profile. Bitcoin’s over 1,000% growth in the past year has drawn out numerous government warnings such as those issued by Loong and Shanmugaratnam. Bitcoin and other cryptocurrencies more broadly are forcing regulators to take notice as their increasing market caps raise them out of “fringe asset” status and legitimize them in the eyes of investors. The MAS chairman said they would continue to monitor cryptocurrency developments closely and will attempt to keep up the regulatory pace as technological progress continues.