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Singapore Authority Warns Investors on the Dangers of Crypto After Prime Minister was Scammed

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Singapore’s Monetary Authority has warned cryptocurrency investors on the dangers of crypto after the Singapore Prime Minister was unaware involved in a crypto scam.

Singapore Authority Issues Crypto Warning to investors

Singapore officials have notified potential Bitcoin (BTC) and cryptocurrency investors, warning them of the dangers of participating in this volatile market.

It’s worth noting that the warning came 48 hours after Singapore Prime Minister Lee Hsien Loon had his profile stolen by a user on the BitClout social token platform and the user used the name of PM to sell tokens worth nearly $10,000.

On Tuesday, Tharman Shanmugaratnam, chairman of the Singapore Monetary Authority, warned that speculation in the cryptocurrency sector was fraught with risk and said that its value had nothing to do with fundamental factors. Shanmugaratnam said retail investors should stay away.

As reported by BNN Bloomberg, Shanmugaratnam said, “Cryptocurrencies are very volatile as their value is usually independent of economic fundamentals. They are therefore very risky as investment products and certainly not suitable for private investors.”

A few days ago, Singapore’s Prime Minister Loong warned citizens to be vigilant about investing in cryptocurrencies after minting tokens with his name, portrait and social media image.

Over the past year, Bitcoin’s 1,000% growth has generated many government warnings, including those from Loong and Shanmugaratnam. Bitcoin and cryptocurrencies are forcing the attention of regulators to a greater extent as they have been removed from their status as “marginal assets” due to their increasing market value and legitimized in the eyes of investors.

Shanmugaratnam stated that MAS will continue to closely monitor the development of cryptocurrencies and will continue to work hard to maintain the pace of regulation as technology advances continue.

He added, “The crypto-assets space is constantly evolving. MAS has been closely monitoring developments and will continue to adapt its rules as needed to ensure that regulation remains effective and commensurate with the risks posed,” said Shanmugaratnam. “Investors, on their part, should exercise extreme caution when trading cryptocurrencies.”

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