Singapore's central bank warns against crypto

Wednesday 10 November 2021 14:44 CET | News

Singapore’s central bank and financial regulator has warned of ‘sharp speculative swings’ and potential risks for retail investors who put their money in cryptocurrencies.

The Monetary Authority of Singapore disapproves of cryptocurrencies or tokens as an investment asset for retail investors, as representatives declared. As the prices of crypto tokens are not anchored on any economic fundamentals, they are subject to sharp speculative swings, they continued. Investors in these tokens are at risk of suffering significant losses, as the central bank says.

However, Singapore has taken a relatively open approach to cryptocurrencies. MAS believes that blockchain, a digital ledger that records transactions that cannot be altered or deleted, and crypto tokens can bring many potential benefits. One potentially strong use case is for crypto tokens to facilitate cheaper and faster cross-border payments and trade finance, MAS believes.

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Keywords: Monetary Authority of Singapore (MAS), cryptocurrency, tokenization, digital assets
Categories: DeFi & Crypto & Web3
Countries: Singapore
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DeFi & Crypto & Web3

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