If there’s a reason why the Monetary Authority of Singapore (MAS) is strict over cryptos in Singapore, now we know why. Looking at what’s been happening in the crypto scene since the beginning of this Year 2022, we thought that things might look up for cryptocurrency.
However, ever since some crypto exchanges had been hacked and the Fed having increased interest rates, things have just gone all the way South. We thought that Three Arrows collapse was bad enough but it seems that there’re more to come. The most recent being Celcius to file for Chapter 11 bankruptcy protection in the US. Before this, there was Voyager Crypto and all these bankruptcies happened in a matter of a few weeks of each other.
Why is a crypto exchange hacked easily and whose behind it? If you look at the names of the founders of these crypto exchanges and currencies, the likelihood is that you’ll find some exotic names which are Russian, Polish and some Eastern European countries, etc. How well do we know them? What’s their background? Who are they connected to? This is not to mention that there’s anything shady or improper. It is just that because of its nature, the cryptocurrency is so fluid and highly volatile that caution needs to be exercised when investing in cryptocurrency. The cryptocurrency was highly priced due to hype and speculation within short periods of time. This to any hacker would be worth a crack at. As such, we can imagine the number of hackers that would be trying to hack into these crypto exchanges. It’s only a matter of time before one of these exchanges would be hacked and soon others will follow. The most recent happened to Singapore-based Crypto.com which was hacked and causing it to lose millions in USD equivalent of Ethereum and Bitcoin.
It is no wonder that the MAS had always cautioned retail investors when intending to invest in cryptos. Read more about how MAS protects the public from the dangers and pitfalls of cryptocurrency investments. What if MAS did not intervene and simply left it to the wisdom of retail investors to decide whether to invest or not? Well, the results could be devastating as we’ll can see from the Taiwanese in this article. While we complain many a time that in Singapore the rules and regulations are too strict, in this case, there’s definitely a reason for it.
Presently, it appears that cryptocurrencies are facing a complete meltdown and it would be best to avoid it until the environment is more stable.