The Monetary Authority of Singapore (MAS) has published an investor warning today telling the public to proceed with “extreme caution” when they invest in cryptocurrencies. The statement by MAS comes as the price of Bitcoin has gone hyperbolic nearing $20,000 per BTC. At the beginning of 2017, Bitcoin was priced at under USD $1000.
MAS said it is concerned that members of the public may be attracted to invest in cryptocurrencies and reminded the public that cryptocurrencies are not legal tender. They are not issued by any government and are not backed by any asset or issuer. MAS noted they do not regulate Bitcoin or any other crypto and consumers are thus not afforded any associated protections. MAS cited the Mt. Gox hack that occured in 2014. Mt. Gox is one of the most notorious crypto debacles as cyber thieves heisted $450 million in digital currency from the exchange which quickly collapsed.
MAS said the recent surge in the prices of cryptocurrencies is driven by speculation and the risk of a sharp reduction in prices is high. Investors should be aware that they run the risk of losing all their money.
As most operators of platforms on which cryptocurrencies are traded do not have a presence in Singapore, MAS said it would be difficult to verify their authenticity or credibility and a significant risk of fraud.
The regulator added that if a cryptocurrency intermediary is found to have used cryptocurrencies illegally, its operations could be shut down by law enforcement agencies. Members of the public who suspect that an investment involving cryptocurrencies could be fraudulent or misused for other unlawful activities, are encouraged to report such cases to the Singapore Police.
[clickToTweet tweet=”MAS said cryptocurrency Investors run the risk of losing all their money #Bitcoin” quote=”MAS said cryptocurrency Investors run the risk of losing all their money #Bitcoin”]