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Website Promoting Bitcoin Scam Flagged by Singapore Central Bank

September 20, 2018 14:16
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Singapore’s central bank MAS (Monetary Authority of Singapore) has issued warning about a website that has been promoting Bitcoin scam as the site has used false comments attributed to Tharman Shanmugaratnam, the MAS chairman and Deputy Prime Minister. MAS noted that the statement which was posted in website in relation with Tharman Shanmugaratnam is false and misleading expect for the fact that activity surrounding cryptocurrency trading is very low in Singapore.

The Central bank has been actively propagating to its citizens against providing any sort of personal or financial information on the website which advertise or suggest people to create a bitcoin account using a bank account or credit card.

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The central bank has on multiple occasions acknowledged the fact that any investments that involve cryptocurrencies are highly risky. On Dec. 19, 2017, the central bank issued a notice about the risks associated with cryptocurrency and on Feb. 5, 2018, Tharman said citizens could “lose their shirts” investing in cryptocurrencies in response to a Parliamentary question.

The central bank has also urged people with doubts to contact law enforcement agencies on any investment plans that seem suspicious. MAS has since asked officials to step up their regulatory activity as Singapore has now become a safe haven for cryptocurrency exchanges and ICOs following China’s crackdown.

While MAS has declines to openly name the parties involved, in the month of May’18 the central bank notified eight cryptocurrency trading platforms to become authorized before offering digital token trades for tokens constituting securities or digital tokens. This notice was issued at a time when the number of exchanges and token offerings were both seeing increased activity in Singapore market. The central bank even halted an ICO at one point of time as it was believed that the e issuer violated securities law after the central bank found the tokens represented equity ownership in a company and the offering did not have the required MAS registered prospectus.

The central bank last November issued a set of guidelines to be followed when digital tokens are offered and is still looking for more ways to regulate trading activities surrounding cryptocurrencies  to protect investors from the risk posed by decentralized currencies.

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