Singapore’s central bank and financial regulator has reiterated that crypto-asset trading is “not suitable for the general public,” renewing its warning after the Binance hack. The Monetary Authority of Singapore said consumers should be cautious when dealing with crypto platforms, particularly those that are not regulated.
MAS also restated that Binance is not licensed to provide regulated financial services in Singapore. The exchange was placed on the regulator’s Investor Alert List in September 2021, according to the authority.
Warning follows security incident
MAS issued the reminder in the wake of the Binance hack, using the incident to underscore the risks tied to crypto-asset trading. The regulator said losses in the sector cannot be fully avoided through supervision or platform-level protections alone.
In comments reported by Lianhe Zaobao, an MAS spokesperson said crypto-asset trading is not appropriate for the general public and urged consumers not to deal with unregulated entities. The statement reinforced the regulator’s long-standing position that participation in the asset class carries significant risk.
Licensed firms still cannot remove core risks
The authority said firms that are licensed in Singapore are required to maintain strict controls for technology and cyber risk management, as well as safeguards for customer assets. Those obligations are meant to reduce operational and security weaknesses at regulated businesses.
At the same time, MAS stressed that such protections do not eliminate the possibility of losses. According to the regulator, the inherent risks of crypto assets remain even when a consumer uses a licensed provider, meaning regulatory compliance cannot fully shield users from the volatility and other dangers associated with the market.
Binance status in Singapore
MAS separately reiterated that Binance does not hold a licence to provide regulated financial services in Singapore. The regulator also noted that Binance has been on its Investor Alert List since September 2021.
That list serves as a public warning about entities that may appear to be wrongly perceived as regulated in Singapore. In repeating Binance’s status alongside its broader caution on crypto trading, MAS linked the latest warning to concerns about consumers using platforms outside the country’s regulated framework.
What MAS has confirmed
The regulator’s latest message does not change its core position: crypto trading remains a high-risk activity that, in MAS’s view, is unsuitable for the general public. Its latest remarks focus on caution after the Binance hack and on reminding consumers that regulation has limits even where safeguards exist.
For now, the clearest confirmed step from MAS is its continued advice that consumers exercise caution and avoid dealing with unregulated entities. It has also reaffirmed Binance’s unlicensed status in Singapore and its inclusion on the Investor Alert List.
Source: en.bloomingbit.io