MAS outlook on Cryptocurrency
What is MAS' view on the collapse of FTX?
MAS reaffirms its stance that cryptocurrencies are highly risky, and are not for retail investors.
According to MAS (Media Releases)
last revised 21 Nov 2022
12. The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous.
13. Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it would be currently only regulated to address money-laundering risks, not to protect investors. This is similar to the approach currently taken in most jurisdictions. MAS has recently published a consultation paper proposing basic investor protection measures for crypto players who are licensed to operate in Singapore.
14. Further, even if a crypto exchange is well-managed, cryptocurrencies themselves are highly volatile and many of them have lost all value.
15. The ongoing turmoil in the crypto industry serves as a reminder of the huge risks of dealing in cryptocurrencies. As MAS has repeatedly stated, there is no protection for customers who deal in cryptocurrencies. They can lose all their money.