The monetary Authority of Singapore (MAS), which is the country’s central bank, has been very concerned by the meteoric rise of the value of Bitcoin and other crypto-currencies. Thus, it has decided to issue a caution to the public against investments in the field of crypto-currencies.
The MAS remains vigilant
In a statement released yesterday, the MAS has urged the public to “act with extreme caution and to be aware of the significant risks” related to investments in crypto-currencies. “The MAS is concerned that some of our fellow citizens could be attracted to crypto-currencies, such as Bitcoin, due to the recent rise in their prices “, a-t-we could read in the press release. The crypto-currencies, such as Bitcoin, are not recognized as lawful funds, stressed the financial regulator, adding that it will not regulate the Bitcoin.
Singapore is divided on the crypto-currencies
“The MAS considers that the recent rise in price of crypto-currencies has been caused by speculation,” added the authority. Thus, the MAS is tune of the majority of central banks around the world. “The risk of a sharp price decline is high. Those who invest in crypto-currencies should be aware that they run the risk of losing all their capital, ” added the central bank by reference to the volatility. The central bank has continued reminding the investors that they would not be the beneficiaries of any insurance or any guarantees in investments related to crypto-currencies.
This release of the MAS intervenes in spite of the recent remarks of the director-general of the central bank, Ravi Menon, pointing out that he will be very attentive to the developments of the case concerning the regulation of crypto-currencies. Ravi Menon has underlined that ” the Bitcoin itself is no problem, but the real risks come from intermediaries who work in the industry of crypto-currencies. “
Source : Cryptocoinsnews