Singapore warns public against crypto

SourceEmirates Business
SectorFinancial Markets
CountryMiddle east

Singapore once again warned the public about the risks of trading cryptocurrencies like Bitcoin, a market that while relatively small in the city-state surged in significance over the past year. "Cryptocurrencies can be highly volatile, as their value is typically not related to any economic fundamentals," Tharman Shanmugaratnam, the chairman of the Monetary Authority of Singapore, said in response to a parliamentary question. "They are hence highly risky as investment products, and certainly not suitable for retail investors." He said that cryptocurrency funds are not authorised for sale to retail investors. The MAS also has powers to impose additional measures on digital token service providers, under which exchanges offering trading of cryptocurrencies are regulated, as needed, according to Tharman, who is senior minister and coordinating minister for social policies.

Tharman's comments come as the total market value of cryptocurrencies pushed past $2 trillion for the first time, doubling in about two months amid surging institutional demand. Bitcoin has been on a tear as investors dabble in crypto as a way to boost returns on cash in a world of near-zero interest rates, with the likes of Tesla Inc. saying last month it will accept its use as payment for cars. ...read more...