Singapore central bank ‘frowns on crypto’, warns of ‘large losses’ as bitcoin and ethereum register bull rallies

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(Kitco News) The Monetary Authority of Singapore (MAS) has issued a warning to retail investors who embrace crypto assets, saying there is a risk of “large losses.”

Singapore’s central bank “frowns on cryptocurrencies or tokens as an investment asset for retail investors,” MAS chief executive Ravi Menon told the Singapore Fintech Festival.

Large rallies can be followed by violent setbacks. “The prices of crypto tokens are not anchored on any economic basis and are subject to strong speculative fluctuations,” Menon said. “Investors in these tokens are at risk of significant losses.”

Overnight, bitcoin and ethereum hit new highs, the former reaching $ 68,525.84 and the latter reaching $ 4,839.92. Since the start of the year, bitcoin has grown by over 130% and ethereum by 550%.

Record entries in bitcoin commodities and funds reveal the strength of the current rally. Data from digital asset manager CoinShares shows a record $ 6.4 billion transferred since the start of the year. Bitcoin inflows totaled $ 95 million last week alone.

Both cryptocurrencies have seen insane price swings this year, with the biggest pullback in May after Tesla and SpaceX CEO Elon Musk announced Tesla would no longer accept bitcoin as a payment method. for its vehicles.

More central banks are speaking out against cryptocurrency risks as the space’s combined market capitalization hits $ 3 trillion.

Bank of England Governor Andrew Bailey has pointed out that the rise of crypto assets is spurring illegal activity.

“I am concerned that with the advent of digital means of payment, and in particular crypto assets, I am concerned that the evidence suggests, and we see it, provides another means of payment for people who wish to carry out criminal activity” Bailey said on Monday.

Over the weekend, Bank of Canada (BoC) Governor Tiff Macklem said bitcoin “is not a digital currency,” adding that “people don’t use bitcoin to buy things”.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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