Singapore’s central bank warns against crypto, says retail investors risk ‘significant losses’ – CNBC

Singapore’s central bank warns against crypto, says retail investors risk ‘significant losses’ – CNBC

Signage for the Monetary Authority of Singapore (MAS) is displayed outside the central bank’s headquarters in Singapore.

Sam Kang Li | Bloomberg | Getty Images

SINGAPORE — Singapore’s central bank and financial regulator warned Tuesday of “sharp speculative swings” and potential risks for retail investors who put their money in cryptocurrencies.

The Monetary Authority of Singapore “frowns on cryptocurrencies or tokens as an investment asset for retail investors,” said Ravi Menon, its managing director, who was speaking to those at the Singapore Fintech Festival.

Bitcoin and ethereum hit another all-time high in the U.S. on Monday.

Bitcoin was up 2.7% at about 4:09 a.m. ET on Tuesday at $68,086.45, according to Coindesk. Ether — the world’s second-largest digital coin by market value — was up 1.56% and trading at $4,813.94.

Bitcoin is up 130% so far this year and ether is up 550% in that same period. Both digital currencies have seen wild movements throughout the year.

Hundreds of billions of dollars were wiped off cryptocurrency markets in May this year after Tesla CEO Elon Musk tweeted that the electric vehicle maker would stop allowing the use of bitcoin to buy its cars.

“The prices of crypto tokens are not anchored on any economic fundamentals, and are subject to sharp speculative swings,” Menon said. “Investors in these tokens are at risk of suffering significant losses.”