Bitcoin energy storage hits the $60,000 mark, Singapore once again warns the public about the risks of cryptocurrency trading

Recently, while Bitcoin continues to accumulate energy to hit the $60,000 mark, Singapore once again warned the public about the risks of trading cryptocurrencies like Bitcoin.

Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore, said that since the value of cryptocurrencies is usually not related to any economic fundamentals, they are highly volatile. They are highly risky as investment products and are certainly not suitable for retail investors. Investors should be extra cautious when trading cryptocurrencies.

In addition, he also stated that cryptocurrency funds are not authorized to sell to retail investors. The Monetary Authority of Singapore (MAS) has the right to impose additional measures on digital token service providers. Exchanges that provide cryptocurrency transactions will be regulated as needed.

At the same time, data shows that the total market value of cryptocurrencies has reached a record $2 trillion. In the case of a surge in institutional demand, it doubled in two months. Companies such as Tesla also said last month that they would use Bitcoin as a way to pay for cars.

Although companies like Elon Musk, Mark Cuban, and Paul Tudor Jones have recognized cryptocurrencies, the Singapore Monetary Authority is not the only The industry has a worried and cautious regulator. European Union regulators recently warned that investors will face “significant” risks after Bitcoin’s rise.

At the same time, Tharman also pointed out that the Singaporean authorities have stepped up their efforts to combat money laundering and terrorist financing risks associated with cryptocurrencies. Tharman said that among the measures it has taken, MAS has stepped up its surveillance of the encryption department to identify suspicious networks and high-risk activities that may require further scrutiny. He said that MAS is continuing to raise people’s awareness of the risks of investing in digital assets to prevent them from being deceived.

“The field of crypto assets is constantly evolving,” Tharman said. “The HKMA has been closely monitoring developments and will continue to adjust its rules as necessary to ensure that supervision remains effective and commensurate with the risks posed. Investors need to trade Be extra cautious when encrypting currencies.”

It is worth mentioning that the Singapore Monetary Authority’s attention to and supervision of cryptocurrencies have already been implemented. As early as January 2020, Singapore introduced a new payment legislation, providing global cryptocurrency companies with an opportunity to expand their business in the country by applying for an operating license for the first time.

The Payment Services Act (PaymentServicesAct) is the first comprehensive regulatory provision for companies engaged in activities ranging from digital payments to token transactions such as Bitcoin and Ethereum (ETH). In addition to bringing encryption companies into the scope of supervision, the law will also give the Monetary Authority of Singapore (MAS) formal supervisory powers to supervise cybersecurity risks and control money laundering and terrorist financing. The Monetary Authority of Singapore stated that the new law will strengthen consumer protection and promote confidence in the use of electronic payments. LooSiew Yee, Assistant Managing Director of the Monetary Authority, said: “The activity-based and risk-focused regulatory framework allows us to apply rules on a proportional basis and maintain robustness to the ever-changing business model.

On March 16, 2020, the Monetary Authority of Singapore also issued a 73-page new guideline to provide guidelines for electronic payment token service providers. The recent rapid advances in technology have had a profound impact, including in the field of payments. In particular, advances in financial technology have opened up new opportunities for faster and more efficient payment methods. However, these new payment methods also bring new money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks. In particular, the Central Monetary Authority of Singapore recommends retrospecting previous token transactions as early as possible to determine whether there are any suspicious circumstances.

In July 2020, the Monetary Authority of Singapore proposed to conduct licensing evaluation and supervision of anyone in Singapore who provides digital token services overseas.