The Singapore Monetary Authority describes ICO risks
Potential ICO investors were warned by the Monetary Authority of Singapore that buying digital tokens might prove risky.
The paper published by the MAS begins with the recommendation of the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS) to always assess potential risks while operating with digital tokens and investing in cryptocurrency.
The main financial regulator of the country has prepared a list of dangers awaiting potential investors. It includes six paragraphs:
- on investments that promise big benefits;
- on highly speculative investments;
- on insufficient secondary market liquidity;
- on sellers without any proven expertise;
- on foreign and online operators;
- on risks of unwitting cooperation with money launderers and financiers of terrorism.
The MAS is not going to restrict anything connected with tokens yet, the paper is merely a consumer educational material.
Ask, check and confirm – these are the three commandments of a cryptocurrency investor, as suggested by the MAS.
Ask the seller as many questions as you think you need for understanding of an investment opportunity. Check if the information provided by seller on him and his business scheme is correct. Confirm the seller’s or his representative’s credentials using special MAS resources. The MAS once again recommends these three precautions for investors at the end of the published document.
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