Singapore’s deputy prime minister has advised retail investors to steer clear of cryptocurrencies, citing that they are “highly risky.” He stressed, “We cannot express this enough.”
Singapore’s Deputy Prime Minister Heng Swee Keat reportedly warned retail investors against investing in cryptocurrency Tuesday while speaking at the Asia Tech x Singapore (ATxSG) summit. He said:
Retail investors, especially, should steer clear of cryptocurrencies. We cannot express this enough.
He brought up the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST) to support his argument. Many investors lost a lot of money when the two cryptocurrencies crashed.
While cautioning that cryptocurrency is “highly risky,” the deputy prime minister stated that digital dollars could transform finance.
Keat also stressed the importance of crypto regulation, stating:
We must continue to adapt our rules to ensure that regulation remains facilitative of innovation, and yet addresses the key risks that crypto assets pose.
Singapore has adopted strict rules on crypto, with the country’s central bank, the Monetary Authority of Singapore (MAS), as the main regulator of the crypto sector. Many people have applied for a license with the MAS to operate a crypto exchange. However, about 100 companies have already failed to meet regulator requirements.
Over the past two years, the MAS only granted licenses and in-principle approvals to 11 digital payment token service providers. “We will continue to evaluate applications, and facilitate live experiments through regulatory sandboxes, to enable safe adoption in the financial sector,” the deputy prime minister detailed.
The central bank said in April that its licensing process for digital asset service providers needs to be stringent. “It needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities,” the MAS explained.
In January, cryptocurrency ATMs closed down in the country following the MAS announcement. The central bank also restricted crypto ads earlier this year, stressing that crypto trading is not suitable for the general public.
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