In an interview with Conversation With (to be telecast Jan 25 at 8.30pm), Mr Mohanty pointed out that regulators around the world are keeping a close watch on cryptocurrency trades, and there is “a great indication that regulators are getting serious about this whole cryptocurrency market”.
He added that as the market for digital currencies like Bitcoin continue to grow, regulators would eventually step in to apply consumer-protection regulation that will correct the hype.
“We know exactly when to intervene, based on the market size and the demand and transaction volume, and we will come in at the right time. So, I’m not overly worried about getting to some large financial system crisis,” he said.
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Bitcoin is a form of digital currency that is based on blockchain technology.
From 2017 to 2018, Bitcoin’s price skyrocketed by more than 1,300 per cent - hitting an all-time high of US$ $19,783 on December 17 , 2017 - and feeding a global buying frenzy.
However, critics like famed billionaire investor Warren Buffett have called the Bitcoin a “mirage” and said that cryptocurrencies “will come to a bad ending”. Chief executive officer of JPMorgan Chase & Co Jamie Dimon has also called Bitcoin “ a fraud”.
Against the backdrop of Bitcoin’s seemingly relentless gains last December, the MAS issued a strong warning to investors to act with “extreme caution”.
Financial regulators in around the world are also clamping down on cryptocurrencies – last year, Chinese authorities banned cryptocurrency exchanges.
Earlier in January, South Korean regulators were mulling a bill that would ban cryptocurrency-trading activities completely in the world’s third largest market for such trades. The possibility of such a ban set Bitcoin prices tumbling to below the US$10,000 mark and less than half its peak value in December
Read more at https://www.channelnewsasia.com/news/cnainsider/bitcoin-cryptocurrency-lehman-financial-crash-risk-mas-fintech-9893862
The Monetary Authority of Singapore’s (MAS) chief fintech officer Sopnendu Mohanty said he does not foresee a Lehman Brothers-like financial meltdown with Bitcoin at this point of time