Singapore’s Monetary Authority has warned crypto investors of the potential dangers of cryptocurrency after Prime Minister, Lee Hsien Loong, had fallen prey to a false token scam.
Singaporean officials have thus issued a stern warning to both current and future crypto investors, asking them to tread carefully as the digital currency market is full of fraudsters and scammers. This warning has come just a couple of days following the Prime Minister having his likeness be appropriated by someone on Bitclout, which is a social token platform. The user had used the Prime Minister’s name and identity to sell a large number of tokens, which were worth nearly $10,000 in total.
‘Cryptocurrency not based on any substantive fundamentals’, says Shanmugaratnam
Earlier today, Tharman Shanmugaratnam, the aforementioned Monetary Authority’s chairman, had reminded everyone of the dangers of investing in an industry that relies heavily on speculation and is extremely volatile in nature. He argued that cryptocurrency does not have any link to underlying basic economic fundamentals and that retail investors might want to stay away.
Keeping all this in mind, he further stated that because cryptocurrencies are so unpredictable, they are therefore to be viewed as extremely risky investments, particularly for everyday retail investors.
This attitude from the chairman, combined with the Prime Minister being scammed, has resulted in increased vigilance when it comes to cryptocurrency in Singapore. PM Loong has been deeply disturbed by someone stealing his likeness and warns others that the same could very well happen to them.
Regulators forced to take notice due to surge in cryptocurrency prices
Bitcoin, the world’s largest cryptocurrency, experienced a whopping 1,000% growth within the previous year alone. This unprecedented growth has resulted in numerous regulators and government officials being forced to take notice amongst staggering levels of market capitalization generated by Bitcoin and other altcoins, particularly Ethereum.
The aforementioned officials, including the likes of Shanmugaratnam and Loong, have thus issued several warnings pertaining to the apparent dangers of cryptocurrency, even though many investors simply see this as a diversion tactic by the governments as the banks finally have a serious competitor.
Regulators are now being forced to recognize cryptocurrencies as more than just a ‘fringe asset’ and acknowledge them as being legitimate in the eyes of those that choose to invest in and trade with them.
Shanmugaratnam has thus stated that the Monetary Authority will continue to track and monitor any and all developments relating to cryptocurrency in Singapore very closely and that government officials will do their best to maintain the regulatory pace in accordance with technological progress. He has also asked investors to assist the government on their end by exercising caution when it comes to trading in crypto.