Heng Swee Keat: Stay Away from Crypto!

Heng Swee Keat Issues Crypto Warning

Heng Swee Keat: Stay Away from Crypto!

Heng Swee Keat – the deputy prime minister of Singapore – is telling all retail investors to steer clear of cryptocurrencies, warning that putting one’s life savings or tons of money into the arena could lead to serious financial problems.
Heng Swee Keat Issues Crypto Warning
He mentioned during a recent conference:
Retail investors especially should steer clear of cryptocurrencies. We cannot emphasize this enough.
His words come following the crash of both Terra and Luna, algorithmic stable coins that fell into oblivion a few weeks ago after they were de-pegged. These assets were not tied to any physical collateral or fiat currencies, and thus were considered much riskier in the stable coin market than items like Tether or USD Coin (USDC).
The destruction of both assets caused a huge collapse in the crypto market, with many major coins – including bitcoin, Ethereum, Solana, and Cardano – dropping to new lows and virtually losing all their 2021 gains. Only now is bitcoin beginning to show signs of coming back, with a price currently set at $31,500. This may not seem like much, though it’s huge given that the currency was trading in the mid-$20,000 range just a few weeks ago.
While warning everyone to stay away, however, Keat managed to contradict himself somewhat in the same speech by claiming that crypto and blockchain had the ability to completely change the financial space for the better. He commented:
We must continue to adapt our rules to ensure that regulation remains facilitative of innovation, and yet addresses the key risks that crypto assets pose.
Regulation has become a serious topic in Singapore, with the Monetary Authority of Singapore (MAS) recently passing legislation that required all crypto exchanges and related platforms looking to do business outside the country to be fully licensed. Over the past two years, only 11 companies have managed to obtain licensure through the agency.
Keat stated:
We will continue to evaluate applications and facilitate live experiments through regulatory sandboxes to enable safe adoption in the financial sector.
Time to Explore Defi
Not long ago, Keat also launched what he’s called Project Guardian, which he says will be utilized to explore further tokenization opportunities and “develop the future of finance infrastructure.” One of the big initiatives of the organization will be to explore decentralized finance (defi). Keat mentioned:
In short, we must approach emerging tech with an open mind, separating the hubris from its true underlying potential. Through regulation, we work constructively to realize the gains of these new technologies and partner responsible and innovative players with strong risk management capabilities to build the foundations of the digital asset ecosystem… Our investment in quantum computing and quantum engineering is part of our approach of trying to anticipate the future, and proactively shaping the future that we want.

Tags: bitcoin, Heng Swee Keat, Singapore

Leave a Reply

Your email address will not be published.

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
AdonFinance
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance