The cryptocurrency market’s recent spurt has caught the attention of the Monetary Authority of Singapore (MAS) which has urged investors to understand the risks when considering cryptocurrency-related investments.
The MAS believes that the recent surge in the price of cryptocurrencies was driven by speculation, and may attract people to invest. Underscoring the anonymity feature of cryptocurrencies, the MAS said that they can be misused for unlawful activities
“MAS reminds the public that cryptocurrencies are not legal tender. They are not issued by any government and are not backed by any asset or issuer,” it said. “There is no regulatory safeguard for investments in cryptocurrencies. As in most jurisdictions, MAS does not regulate cryptocurrencies. Nor do MAS regulations extend to the safety and soundness of cryptocurrency intermediaries or the proper processing of cryptocurrency transactions.”
Furthermore, the regulator said that as most operators of cryptocurrency exchanges are not based in Singapore, it would be difficult to verify their authenticity.
“Members of the public who lose money from investing in cryptocurrencies will not be able to rely on any protection afforded under legislation administered by MAS. Before investing in cryptocurrencies, members of the public should carefully consider the claims being made about the products being offered - if the touted ease of making significant profits sounds too good to be true, it probably is,” it added.
