Singapore authority points crypto warning after PM falls prey to scammers

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Officials in Singapore have notified potential Bitcoin (BTC) and cryptocurrency investors, warning them of the dangers of such volatility.

In particular, the warning comes just 48 hours after Singapore Prime Minister Lee Hsien Loong appropriated his likeness from a user on the BitClout social token platform who used the Prime Minister’s name to purchase tokens worth nearly US $ 10,000 Dollars for sale.

On April 6, the chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, warned of the risks associated with speculation in the cryptocurrency space, claiming that its value was not tied to underlying fundamentals. Shanmugaratnam said retail investors should stay away.

“Cryptocurrencies can be very volatile because their value is usually unrelated to economic fundamentals. They are therefore very risky as investment products and certainly not suitable for retail investors, ”Shanmugaratnam said, as reported by BNN Bloomberg.

A few days earlier, Singapore Prime Minister Lee Hsien Loong warned citizens to remain vigilant when it comes to cryptocurrency investments after tokens were minted with his name, likeness and social media profile.

Bitcoin’s 1,000% growth over the past year has sparked numerous government warnings, such as those from Hsien and Shanmugaratnam. Bitcoin and cryptocurrencies in the broader sense are forcing the supervisory authorities to take notice, as their growing market capitalizations lift them out of the status of “marginal assets” and legitimize them in the eyes of investors.

Shanmugaratnam said the MAS will continue to closely monitor the development of the cryptocurrency and seek to maintain the regulatory pace as technological advances continue.

“The space for crypto assets is constantly evolving. MAS has been closely monitoring developments and will continue to adjust its rules as necessary to ensure that regulation remains effective and appropriate to the risks involved, ”said Shanmugaratnam. “For their part, investors should exercise extreme caution when trading cryptocurrencies,” he added.

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