MAS bans credit use for cryptocurrency purchases

MAS aims to help consumers avoid losses from crypto investments.

The Monetary Authority of Singapore (MAS) has prohibited digital payment token service providers from offering credit or leverage to all retail customers, regardless of age, for cryptocurrency purchases.

MAS has also restricted these providers from accepting credit cards.

According to MAS, cryptocurrencies are highly volatile and speculative, often lacking fundamental value. It has warned the public that dealing in cryptocurrencies is highly risky and not suitable for the general population.

Additionally, MAS stated that using credit or leverage magnifies losses, and investors can lose more than their initial investment.

MAS also cautioned that regulatory measures cannot shield consumers from cryptocurrency losses and advised them to avoid such investments.