Singapore’s Deputy Prime Minister Advises Retail Investors to Steer Clear of Cryptocurrencies – While addressing at the Asia Tech x Singapore (ATxSG) summit on Tuesday, Singapore’s Deputy Prime Minister Heng Swee Keat reportedly urged retail investors against investing in cryptocurrency.
“Cryptocurrencies should be avoided by retail investors in particular. This is something we can’t stress enough.”
To further his argument, he cited the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST). When the two cryptocurrencies plummeted, many investors lost a lot of money.
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While the deputy prime minister cautioned that bitcoin is “very dangerous,” he claimed that digital currencies have the potential to alter finance.
Keat also emphasized the significance of cryptocurrency regulation, saying:
“We must continue to change our rules to ensure that regulation facilitates innovation while also addressing the major concerns posed by crypto assets.”
Singapore has enacted stringent crypto rules, with the Monetary Authority of Singapore (MAS) serving as the sector’s main regulator. Many people have applied to the MAS for a license to run a crypto exchange. About 100 companies, however, have already failed to meet regulatory criteria.
The MAS has only granted 11 digital payment token service providers licenses and in-principle authorization in the last two years. “To allow safe adoption in the financial sector, we will continue to evaluate applications and facilitate live experiments using regulatory sandboxes,” the deputy prime minister noted.
In April, the central bank emphasized that its licensing process for digital asset service providers must be stringent. “It has to be, the MAS added, “because we want to be a responsible global crypto hub with innovative players and solid risk management capabilities.”
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Singapore’s Deputy Prime Minister Advises Retail Investors to Steer Clear of Cryptocurrencies – Following the MAS announcement in January, bitcoin ATMs in the country were closed down. Earlier this year, the central bank imposed restrictions on crypto advertisements, emphasizing that crypto trading is not acceptable for the general public.