Singapore warns retail investors on Crypto, but keeps “open mind”

Singapore is painting a mixed picture on its views of Crypto, warning retail investors due to its high risk, but also pointing out their potential to change the future of finance.

The Deputy Prime Minister has addressed the country’s position on crypto.

He’s warning retail investors to steer clear of crypto even as Singapore adopts its own rules to address key risks.

“Retail investors especially should steer clear of cryptocurrencies. We cannot emphasise this enough,” he said.

Mr Heng was speaking at the opening of the second Asia Tech Singapore summit.

He noted crypto assets have gathered attention due to their fast growth in recent years and promises of high returns.

But he also spoke of the crash of Terra Luna which saw many retail investors suffer heavy losses.

“We must pierce through both the hubris and the veil of suspicion to understand the potentially transformative underlying technologies,” he said. “Let us not throw out the baby with the bathwater.”

“We remain keen to work with blockchain and digital asset players to encourage innovation, and build up trust in the sector,” he added.

Mr Heng said crypto assets are part of a new wave of emerging digital technologies and has pledged to keep an open mind.