Monetary Authority of Singapore (MAS) has advised the public ‘to act with extreme caution and understand the significant risks they take on if they choose to invest in cryptocurrencies such as the Bitcoin. Bitcoin it is as the MAS felt ‘concerned that members of the public may be attracted to invest in cryptocurrencies, such as Bitcoin, due to the recent escalation in their prices.’
Bitcoin price has seen a massive surge in the prices but the MAS told the public to take it easy and understand that these cryptocurrencies are not legal tender. They are not issued by any government and are not backed by any asset or issuer. It also said that the surge in prices is driven by speculation and hence, a sharp reduction in prices is the risk that cannot be ruled out. MAS does not regulate cryptocurrencies and hence, extends no safety net for the investor.
It told the public:
“Before investing in cryptocurrencies, members of the public should carefully consider the claims being made about the products being offered – if the touted ease of making significant profits sounds too good to be true, it probably is. Investors should carefully assess whether an investment in cryptocurrencies is suitable for their investment objectives and risk appetite. Members of the public who suspect that an investment involving cryptocurrencies could be fraudulent or misused for other unlawful activities, should report such cases to the Police.”
While the MAS is busy cautioning the public, a café has just opened in Singapore which is willingly taking the Bitcoin as the mode of payment.
By Namta Gupta