Singapore’s government has reiterated its cautious approach to cryptocurrency, warning consumers against speculative investments while emphasizing its commitment to fostering a responsible digital asset ecosystem.
Alvin Tan, Minister of State for Trade and Industry and Culture, Community and Youth, and a board member of the Monetary Authority of Singapore (MAS), reaffirmed the government’s position during a recent parliamentary session.
“Our Government’s message on cryptocurrencies has been clear and consistent: Consumers should steer clear of cryptocurrencies,” Tan stated. “Cryptocurrencies are highly volatile, highly risky, and speculative in nature. They are usually not anchored on any fundamental value.”
While Singapore supports innovation in digital assets, MAS has drawn a sharp distinction between developing the digital asset ecosystem and speculation in cryptocurrency, the latter of which it actively discourages for retail investors.
Tan addressed concerns about whether Singapore would consider banning cryptocurrencies outright. “Imposing a prohibition may lead to some consumers turning to unlicensed cryptocurrency exchanges to access cryptocurrency services, where they might not be properly informed of risks to make well-informed decisions,” he explained.
Instead, MAS has implemented a robust regulatory framework to safeguard consumers, covering areas such as consumer access, business conduct, and technology risks.
As part of these measures, MAS prohibits digital payment token (DPT) providers from offering credit or leverage to retail customers for cryptocurrency purchases, including restrictions on the use of credit cards for such transactions.
Recognizing the ongoing risks, the government also plans to intensify public communication efforts to warn consumers about the dangers of cryptocurrency investments.
“We will continue to review the cryptocurrency landscape actively and adjust our approach where necessary and appropriate,” Tan added.
Singapore has positioned itself as a hub for financial innovation while maintaining strict regulatory oversight. While the city-state embraces blockchain technology and the potential of digital assets, it remains firm in its stance that cryptocurrency speculation carries significant risks for retail investors.
Shogun Lin
