Alvin Tan warns Singaporeans to avoid cryptocurrencies as MAS cracks down on risky credit and leverage practices

SINGAPORE: In a recent statement in Parliament on March 5, 2025, Singapore’s Minister of State for Trade and Industry and Culture, Community and Youth, Mr Alvin Tan, strongly cautioned consumers against engaging in cryptocurrency investments, highlighting their speculative and volatile nature. According to a recent FinTechNews report, Mr Tan, who also serves as a board member of the Monetary Authority of Singapore (MAS), emphasised that digital assets lack fundamental value and are highly risky for the general public.

Responding to a question posed by Yio Chu Kang MP Yip Hon Weng regarding the government’s decision to enforce stricter regulations for digital payment token service providers, Mr Tan explained that MAS has consistently issued warnings about the dangers of dealing with cryptocurrencies. He clarified that these assets are not suitable for most consumers due to their inherent instability and unpredictable price fluctuations.

As part of the new regulatory framework, MAS has introduced measures that prohibit digital payment token service providers from offering credit or leverage to retail customers, regardless of their age. One of the key changes includes a ban on using locally issued credit cards to purchase cryptocurrencies.

Mr Tan further warned that purchasing cryptocurrencies using credit cards essentially means borrowing at high interest rates, which could lead to consumers accumulating significant debt if the value of their digital holdings declines. Additionally, he cautioned that leveraging or borrowing to invest in cryptocurrencies could result in losses exceeding the initial investment, given the volatile nature of the market.

Mr Tan’s remarks serve as a stark reminder of the dangers posed by the crypto market and the government’s commitment to safeguarding consumers through tighter regulations. However, the ultimate message remains clear — for most people, the best course of action is to avoid cryptocurrencies altogether.