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The Monetary Authority of Singapore (MAS) claimed that because these transactions involve both Singapore-based and foreign service providers, it is impossible to estimate the percentage of cryptocurrency holdings by the general people in the city-state.
In response to a parliamentary inquiry, Tharman Shanmugaratnam, the minister in charge of MAS, stated that data on the entire cryptocurrency holdings of the Singaporean people were not yet accessible. The general people who invests in cryptocurrencies “stand to lose all the money they have placed into cryptocurrency,” he further cautioned.
According to Ravi Menon, Managing Director at the Monetary Authority of Singapore, the main issue with cryptocurrencies is that their prices are extremely volatile, driven more by speculation than by any underlying economic fundamentals. He made this statement during his opening remarks at the Green Shoots Seminar on Monday.
According to Menon, investing in such cryptocurrencies is extremely dangerous since their perceived value may drop precipitously if public opinion changes.
A total prohibition on retail access to cryptocurrencies, according to the Monetary Authority of Singapore, is unlikely to be effective.
The Singaporean central bank has been discussing its concerns with the sector and soliciting opinions on potential measures to reduce harm to consumers. By October of this year, it will hold a public consultation on the suggestions.
Menon also thinks that consumers must be accountable, use good judgment, and be cautious because no amount of industry safeguards, global cooperation, or central bank regulation would shield consumers from losses if their bitcoin holdings lose value.
It has prohibited digital asset players from offering cryptocurrency services in public places since January of this year.
It is impossible to estimate the amount of bitcoin Singaporeans have acquired through MAS-licensed DPT (Digital Payment Token) service providers, according to Tharman Shanmugaratnam, minister in charge of MAS, because these transactions also include foreign service providers.
However, he cautioned that because to “wildly fluctuating” prices, the general public who invests in cryptocurrencies “stand to lose all the money they have placed into cryptocurrencies.”
The central bank of Singapore has repeatedly advised the general people to avoid dealing in cryptocurrencies and even claimed that they lack any underlying value.
By prohibiting cryptocurrency advertising in public spaces, MAS took action to stifle retail trading, while emphasizing that it wants the island nation to be at the forefront of digital asset innovation.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
