Central Bank of Singapore issuing warning for retail investors against cryptocurrency investment
Bitcoin has been up by more than 130% this year and ether has been registering an increase of about 550% in the same period
The central bank of Singapore and numerous financial regulators have issued a warning on Tuesday stating sharp speculative corrections and upcoming risks for a majority of the retail investors who have their money invested in cryptocurrencies. The Monetary Authority of Singapore (MAS) have long been disapproving the cryptocurrencies as an investment instrument for retail investors, stated by Ravi Menon, managing director. Bitcoin and Ethereum have been found hit yet another all-time high across the U.S. as of Monday. According to Coindesk, Bitcoin soared 2.7% on Tuesday to reach USD 68,086.45. and Ether, which happens to be the second-largest digital coin registered an increase of about 1.56% and started trading at USD 4,813.94.
Bitcoin has been up by more than 130% this year and ether has been registering an increase of about 550% in the same period. The most well recognized cypto’s have been witnessing wild upward and downward movements throughout the year. Countless billions of dollars have been wiped off in the cryptocurrency markets as of May this year right after Tesla CEO statement on twitter that they would stop using bitcoin as a transaction medium in exchange for its cars. The prices of crypto tokens do not have an influence due to the economic fundamentals, and are subject to various speculative shocks. Investors in these crypto’s are anticipated to incur significant losses.
Countries all over the world have been grappling with the regulatory framework of the cryptocurrencies, and only one country, El Salvador, have thus far made bitcoin as a legal tender in the country. Singapore has been using an open approach toward cryptocurrencies. Menon stated that MAS keeps believing of blockchain as a digital ledger for recording transactions that could not get altered, and crypto’s could enhance the benefits. One strong application for crypto tokens is that they facilitate a much cheaper and faster cross-border transactions.
