Singapore’s Minister of State for Commerce and Trade and Tradition, Neighborhood and Youth Alvin Tan, who can be a board member of the Financial Authority of Singapore (MAS), asserted that “customers ought to keep away from cryptocurrencies”.
Talking in Parliament on 5 March 2025, he harassed that digital property are extremely unstable, speculative, and lack basic worth.
Responding on behalf of Deputy Prime Minister and MAS Chairman Gan Kim Yong, Tan addressed a query from Yio Chu Kang MP Yip Hon Weng on the federal government’s choice to tighten laws for digital cost token service suppliers.
He defined that MAS has constantly warned the general public in regards to the dangers of dealing in cryptocurrencies, stressing that they’re extremely dangerous and unsuitable for most of the people.
As a part of stricter laws, MAS has prohibited digital cost token service suppliers from offering credit score or leverage to all retail prospects, no matter age.
This consists of banning the usage of domestically issued bank cards for cryptocurrency purchases.
Tan warned that utilizing bank cards to purchase cryptocurrencies means borrowing at increased rates of interest than different types of credit score, which might go away customers scuffling with compounding debt if the worth of their holdings drops.
He added that utilizing credit score or leverage magnifies losses, and traders can lose greater than the principal quantity they put in.
Whereas the brand new guidelines purpose to guard customers, MAS cautioned that regulatory measures can not totally insulate customers from losses as a result of inherently speculative and extremely dangerous nature of cryptocurrencies and reiterated its recommendation for the general public to keep away from them altogether.
Featured picture credit score: Edited from Freepik
