The Monetary Authority of Singapore (MAS) has issued a strong warning to potential investors to act with “extreme caution” and to fully comprehend the considerable risks of choosing to invest in digital currencies.
2017 saw a spectacular growth of Bitcoin and other decentralised digital currencies with the market booming from around USD $17 billion in January to well over USD $600 billion now.
According to sources, MAS warned that there is a high risk in a sudden reduction in prices. It also warned that by investing in cryptocurrencies, the investors at the risk of losing all their capital.
Concerns over a bitcoin bubble have been growing as its price has increased by 1,700% since the start of 2017 to as high as USD $19,666 (RM 80,258) as of Sunday the 17th of December.
There have also been concerns that regulators have not been doing enough to protect their customers. However, they believe that investors have to take responsibility and should not expect protection if they were to lose money due to the difficulties of regulating a complex market which has no centralised authority.