Singapore authority issues crypto warning after PM falls prey to scammers

Officers in Singapore have issued a discover to would-be Bitcoin (BTC) and cryptocurrency buyers, warning them of the hazards of partaking with such a risky market.

Notably, the warning comes simply 48 hours after Prime Minister of Singapore Lee Hsien Loong had his likeness appropriated by a consumer on the BitClout social token platform, who used the PM’s title to promote tokens price a close to mixed $10,000.

On April 6, the chairman of the Financial Authority of Singapore, Tharman Shanmugaratnam, warned of the inherent dangers concerned in speculating within the cryptocurrency area, asserting that their worth was not tied to any underlying fundamentals. Shanmugaratnam mentioned retail buyers ought to keep away.

“Cryptocurrencies will be extremely risky, as their worth is usually not associated to any financial fundamentals. They’re therefore extremely dangerous as funding merchandise, and positively not appropriate for retail buyers,” mentioned Shanmugaratnam, as reported by BNN Bloomberg.

A few days earlier, Singaporean Prime Minister Lee Hsien Loong warned residents to stay vigilant in relation to cryptocurrency investing after tokens have been minted bearing his title, likeness and social media profile.

Bitcoin’s 1,000% progress up to now yr has drawn out quite a few authorities warnings similar to these issued by Hsien and Shanmugaratnam. Bitcoin, and cryptocurrencies extra broadly, are forcing regulators to take discover as their swelling market caps elevate them out of “fringe asset” standing and legitimize them within the eyes of buyers.

Shanmugaratnam mentioned the MAS would proceed to observe cryptocurrency developments carefully and can try to sustain regulatory tempo as technological progress continues.

“The crypto property area is continually evolving. MAS has been carefully monitoring developments and can proceed to adapt its guidelines as wanted to make sure that regulation stays efficient and commensurate with the dangers posed,” mentioned Shanmugaratnam. “Traders, on their half, ought to train excessive warning when buying and selling cryptocurrencies,” he added.