Following the recent trend Singapore’s “Central Bank” has also issued out a warning on the risks of cryptocurrency investment. Not to forget that just last week, UK’s FCA issued a similar warning describing bitcoin investment as risky as gambling.
Pointing to the volatile nature of cryptocurrency value, the Monetary Authority of Singapore (MAS) has released a statement advising the public to take “extreme caution” if investing in digital currencies such as bitcoin. The authority also stressed that it “does not regulate cryptocurrencies” and that investors must be prepared to face the risk of losing their funds.
Making it clear that cryptocurrencies are “not a legal tender” in the country MAS stated:
“The Monetary Authority of Singapore advises the public to act with extreme caution and understand the significant risks they take on if they choose to invest in cryptocurrencies.”
MAS like UK’s FCA stated that there is no regulatory body to safeguard cryptocurrency investments or to verify the safety of cryptocurrency intermediaries.
However, “if a cryptocurrency intermediary is found to have used cryptocurrencies illegally, its operations could be shut down by law enforcement agencies,” the central bank added.
The statement follows a previous investor warning from MAS on the risks involved in initial coin offerings (ICOs), published in August.
“If consumers deal with entities that are not regulated by MAS, they forgo the protection afforded under laws administered by MAS,” the notice stated at the time.
With the recent warning from the central banks of different countries (viz: Russia, India, UK, Denmark) is it advisable to continue investing in cryptocurrency or are these financial institutions overly apprehensive? ………. To get more information on Bitcoin news subscribe to our newsletter.