New Warning against Cryptocurrency Investments: The Singapore Central Bank
Another warning from a central bank regarding investments in cryptocurrencies came these days. This time, the Central Bank in Singapore issued a warning to investors on the risks of making such an investment.
It has been revealed that the new warning was triggered by the high growths in the prices of a series of cryptocurrencies, including bitcoin and Ethereum. So, these increases determined the Central Bank of Singapore to issue a public warning regarding investments in cryptocurrencies, as the bank allegedly is concerned.
MAS asks people to be careful at the risks of cryptocurrency investments
The public warning was issued through a notice from the Monetary Authority of Singapore (MAS). The notice asked investors and people in general to be careful when it comes to the risks of cryptocurrency investments. The bank asked people to "act with extreme caution" and seek to understand all the "significant risks."
Related: Bank of France talks about the risks associated with bitcoin
Such as many other central banks from around the world, the Singaporean financial institution expressed concerns that people are attracted by the high price of cryptocurrencies and are willing to make investments on this market. The MAS's public notice indicated that:
“MAS considers the recent surge in prices of cryptocurrencies to be driven by speculation. The risk of a sharp reduction in prices is high. Investors in cryptocurrencies should be aware that they run the risk of losing all their capital.”
The authority also claimed that investors should know that they will receive no insurance or safeguards when it comes to cryptocurrency investments, which naturally makes the market riskier for private investors. The Central Bank also said that it does not regulate cryptocurrencies, which are not recognized as a legal tender.
Also Read:Things To Know Before investing in Bitcoin
The whole warning issued by Singapore's Central Bank is somehow not expected, as its managing director previously said that authorities will keep an open mind when it comes to regulating the cryptocurrency market.
