Singapore’s Minister of State for Trade and Industry and Culture, Community and Youth Alvin Tan, who is also a board member of the Monetary Authority of Singapore (MAS), asserted that “consumers should stay clear of cryptocurrencies”.
Speaking in Parliament on 5 March 2025, he stressed that digital assets are highly volatile, speculative, and lack fundamental value.
Responding on behalf of Deputy Prime Minister and MAS Chairman Gan Kim Yong, Tan addressed a question from Yio Chu Kang MP Yip Hon Weng on the government’s decision to tighten regulations for digital payment token service providers.
He explained that MAS has consistently warned the public about the risks of dealing in cryptocurrencies, stressing that they are highly risky and unsuitable for the general public.
As part of stricter regulations, MAS has prohibited digital payment token service providers from providing credit or leverage to all retail customers, regardless of age.
This includes banning the use of locally issued credit cards for cryptocurrency purchases.
Tan warned that using credit cards to buy cryptocurrencies means borrowing at higher interest rates than other forms of credit, which could leave consumers struggling with compounding debt if the value of their holdings drops.
He added that using credit or leverage magnifies losses, and investors can lose more than the principal amount they put in.
While the new rules aim to protect consumers, MAS cautioned that regulatory measures cannot fully insulate consumers from losses due to the inherently speculative and highly risky nature of cryptocurrencies and reiterated its advice for the public to avoid them altogether.
Featured image credit: Edited from Freepik
