Alvin Tan on regulations for digital payment token service providers

Cryptocurrencies are highly volatile and speculative in nature and are usually not anchored on any fundamental value. The Monetary Authority of Singapore (MAS) has consistently issued public warnings that dealing in cryptocurrencies is hazardous, highly risky and not suitable for the general public. Minister of State for Trade and Industry and MAS Board Member Alvin Tan said this in parliament on Wednesday (Mar 5). Noting that using credit or leverage magnifies losses in general, Mr Tan said that MAS has also prohibited digital payment token service providers from providing credit or leverage to all retail customers, regardless of age, for the purchase of cryptocurrencies. This includes restrictions on the acceptance of credit cards. “MAS cautions that regulatory measures cannot insulate consumers from losses associated with the inherently speculative and highly risky nature of cryptocurrencies. Consumers should steer clear of cryptocurrencies,” he said.