<p><span>The Monetary Authority of Singapore (MAS) issued a warning on the possible risks of investing in crypto-currencies.</span> <span>Referring to the recent "speculative" escalation of prices on crypto market, MAS published a statement in which it advised the public "to be especially cautious" when investing in crypto-currencies such as Bitcoin.</span> <span>It was noted that the authorities "do not regulate digital currencies" and that crypto investors should realize that they risking for lose their invested funds.</span></p><p><span>Explaining that digital currencies <span>are</span> "not legal tender" in Singapore, the Monetary Authority stated: "MAS advises investors to make decisions with extreme caution and understand the risks they incur when investing in digital currencies".</span></p><p><span>It was also noted that there is no regulatory body <span>in Singapore</span> which, if necessary, could protect investors investing money in crypto-currencies.</span> Besides<span>, MAS reported that it is not responsible for the "reliability and security" of intermediaries in the crypto currency market.</span> <span>But, at the same time, "if it turns out that the intermediary used crypto currency illegally, law enforcement agencies can stop his operations", representatives of MAS added.</span></p><p><span>This statement follows previous warnings from MAS about the risks related to the initial offers of coins (ICO).</span> <span>The statement said: "When consumers decide to deal with organizations that are not regulated by MAS, they consciously refuse to protect themselves, as provided by local laws"</span>.</p><p><span>It's interesting that not only the Singaporean, but other financial regulators around the world, also advise investors to be cautious, investing in crypto-currencies.</span> <span>The last before this was a warning from the Central Bank of Denmark Head, Lars Rohde, made on December 19, 2017.</span> <span>He advised investors to "stay away" from Bitcoin and stated that investing in digital currencies is "dangerous".</span> <span>He compared Bitcoin to gambling: "If you don't like the casino, now you have an alternative.</span> <span>Bitcoin reminds me of a tulip fever of the 17th century - a bubble coming out of control"</span>.</p><p><span>Warnings about the risks of investing in cryptocurrency made as central banks of Russia and India.</span> <span id="result_box" lang="en"><span tabindex="-1">In Russia, Maxim Oreshkin compared the Bitcoin quotation to the dynamics of the shares prices of the financial pyramid MMM, and the Reserve Bank of India (RBI) stated that he did not allow or license "any companies or enterprises to work with crypto-currencies" and warned "holders, users</span> <span>and traders of digital currencies on financial, economic, legal and operational risks ".</span></span></p><div><h2><strong>ICO guide was issued <span>in Singapore</span></strong></h2></div><p><span>As early as mid-November 2017, before issuing the above warning, MAS issued a guide to the placement of digital tokens (ICO), through which capital is raised using crypto-currency.</span> <span>According to this guide, digital tokens, which represent the issuer's debt obligation, share in the capital of the corporation or a share in the collective investment scheme (CIS), are "securities market products".</span> <span>This means that any person who plans to place digital tokens falling under this definition must comply with the requirements of the Securities and Futures Act, including registering the prospectus in MAS.</span></p><p><span>"Small location," according to</span> the guide <span id="result_box" lang="en"><span tabindex="-1">are exempted from the need to register the prospectus.</span> <span>By them are meant:</span></span></p><ul><li><span>personal accommodation for an amount not exceeding 5 million Singapore dollars (approximately 3.68 million US dollars);</span><span id="result_box" lang="en"> <span>"Personal" means that the offer to acquire a digital token is made only to a person who has been identified in advance, and only the person to whom such an offer has been received can take it;</span></span></li><li><span>accommodation only to institutional investors;</span></li><li><span>private <span>accommodation</span> among not more than 50 persons in a period of 12 months;</span></li><li><span>accommodation</span><span> among accredited investors subject to certain conditions.</span></li></ul><p><span>The above ICO (except for <span>accommodation</span> only among institutional investors) should also be conducted taking into account some requirements, including advertising restrictions.</span></p><p><span>In addition, the requirements for combating money laundering and the financing of terrorism are also being extended to the ICO.</span> <span>For example, MAS recalled that issuers are required to report any suspicious transactions.</span> <span>In addition, it was announced plans to regulate the exchange of digital currencies for purse money under the New Payments Framework in order to exclude the use of crypto currency in money laundering and terrorist financing.</span> <span>Intermediaries engaged in trading or exchanging crypto-currency for fiat money will have to introduce procedures, policies and controls to eliminate such risks.</span> <span>For example, they will need to conduct proper verification of their customers, track transactions, perform screenings, maintain appropriate records, and report suspicious transactions.</span></p><p> <em></em></p>