As I see it | Will young investors heed the Singapore central bank’s cryptocurrency warnings?

High-profile cryptocurrency controversies such as the recent collapse of FTX exchange have the Monetary Authority of Singapore urging caution

But for younger investors with a greater appetite for risk, digital assets are still the future – and they’re not willing to give up on them just yet

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Will the Singapore central bank’s warnings on cryptocurrencies reach the ears of young investors? Photo: AFP

Published: 8:00am, 25 Nov 2022

Hazardous. Highly risky. Not suitable for the public.

These are just some of the warnings about the dangers of cryptocurrency trading that have been issued by Singapore’s central bank in recent months.

And as increasing numbers of investors have had their fingers burned by a series of high-profile cryptocurrency controversies – from this summer’s implosion of the stablecoin TerraUSD to the more recent collapse of the FTX exchange – the Monetary Authority of Singapore’s calls for caution have only grown more urgent.

In its latest statement, the central bank said “the most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous.”

The Monetary Authority of Singapore has repeatedly warned cryptocurrency investors that they stand to lose all their money if things go wrong. Photo: Reuters

Successive crises were a reminder of the “huge risks” involved with this kind of investing, it said, adding that the central bank “has repeatedly stated there is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

.css-1m2rp1p{color:#34b8b5;}As I see it | Will young investors heed the Singapore central bank’s cryptocurrency warnings?

As I see it | Will young investors heed the Singapore central bank’s cryptocurrency warnings?