Singapore again this week warned the public about the risk of trading cryptocurrency such as bitcoin. Although Singapore's cryptocurrency market is relatively small, its importance has risen dramatically over the past year.

"Cryptocurrencies may be very volatile because their value is usually not relevant to any economic fundamentals, so they are highly risky as investment products and are certainly not suitable for retail investors," Tharman shanmugratnam, director of the Singapore monetary authority, said in response to a parliamentary question on Monday

He said Singapore did not allow crypto money funds to be sold to retail investors. The HKMA also has the right to impose additional measures on digital token service providers, if necessary, to regulate platforms for the provision of cryptocurrency trading services. Mr. shangdaman is also Minister of state and social policy coordination in Singapore.

The warning comes as the global cryptocurrency's total market value has topped $2trillion for the first time. Against the backdrop of soaring institutional demand, the market value of cryptocurrency has doubled in about two months.

Singapore's cryptocurrency trading is still small compared to stocks and bonds, with bitcoin, Ethereum and XRP trading at the highest daily volume of just 2 per cent of the average daily volume of major stock exchanges last year, Mr. shangdaman said.

The Singapore authorities have increased their efforts to combat money laundering and terrorist financing risks related to cryptocurrency, Mr. shangdaman added.

Among the measures taken, the HKMA has strengthened its oversight of the encryption area to identify suspicious networks and high-risk activities that may need further review, he said. He said the agency is also continuing to raise awareness of the risks of investing in digital assets to help people avoid being cheated or used.

"The area of crypto assets is growing," said shangdaman. The HKMA has been following developments closely and will continue to adjust its rules as needed to ensure that regulation remains effective and commensurate with the risks posed. As far as investors are concerned, they should be extremely cautious in trading cryptocurrencies. "

(2021-4-6)