Singapore officials have sent out a message to potential bitcoin (BTC) and cryptocurrency investors warning them of the dangers of engaging in such a volatile market.
The warning comes 48 hours after social token platform user BitClout took a look at Singapore Prime Minister Lee Hsien Lung, who used the Prime Minister’s name to sell nearly $ 10,000 worth of tokens.
On Tuesday, the head of the Monetary Authority of Singapore, Tarman Shanmogaratnam, warned of the risks associated with cryptocurrency speculation and stressed that value is not tied to any underlying fundamentals. Shanmogaratnam said retail investors should stay away.
Cryptocurrencies can be very volatile as their value is usually not tied to any economic underpinnings. “As such, they are risky as investment products and are definitely not suitable for retail investors,” Shanmogaratnam said as reported by BNN Bloomberg.
Two days earlier, Singapore’s Prime Minister Long warned citizens to be vigilant about investing in cryptocurrencies after coins with names, similarities and profiles were minted on social media.
Bitcoin’s 1,000% rise over the past year has prompted several government warnings from, for example, Lung and Shanmugaratnam. Bitcoin and cryptocurrencies, on a broader scale, are causing regulators to take notice because the limits of a bloated market take them out of their “margin assets” status and make them legitimate in the eyes of investors.
Shanmogaratnam said MAS will continue to closely monitor cryptocurrency development and will try to keep up with regulatory requirements as technical advances continue.
“The space for cryptocurrencies is constantly evolving. MAS is closely following developments and will continue to adapt its rules as necessary to ensure their effectiveness and risk compliance. “Investors, on the other hand, need to exercise extreme caution when trading cryptocurrencies,” he added.