Wirex Launches Customer Risk Awareness Assessment Survey to Assist Users in Understanding the Challenges and Complexities of Digital Payment Tokens.
Before using Wirex services in Singapore, it’s important to understand the risks involved. That’s why we’ve launched the Risk Awareness Assessment Survey feature - to equip you with valuable insights and help you make informed decisions when engaging with Digital Payment Token (DPT) services.
To comply with the Monetary Authority of Singapore (MAS) Guidelines on Consumer Protection, all users must complete a Risk Awareness Survey. This ensures you’re aware of key risks like market volatility, cybersecurity threats, and the potential for financial loss.
This survey is a requirement for all licensed DPT services providers, designed to help you make informed decisions when engaging with digital payment token (DPT) services. It’s not a test of expertise but a necessary step to confirm your awareness of crypto-related risks.
To strengthen your understanding, we’ve gathered trusted educational resources and key concepts below — read through them to feel more confident before taking the survey.
Explore Educational Resources
For further reading and expert insights, we recommend reviewing the following materials:
These are not exhaustive resources, but these cover fundamental aspects of cryptocurrency investments, associated risks, and best practices for secure and informed trading.
Key Learning Areas
To help you prepare, here are some core concepts related to cryptocurrency investment risks:
1. Market Volatility & Investment Risks
Cryptocurrency prices are highly volatile and can change rapidly within seconds or hours.
Unlike traditional financial assets, crypto prices are influenced by speculative demand, social media trends, and regulatory announcements.
Several factors can impact the price of cryptoassets, including:
Global economic outlook – Broader financial conditions, inflation rates, and macroeconomic trends can drive market sentiment.
Utility and liquidity of a cryptoasset – Cryptoassets with strong use cases and high liquidity tend to be more stable, while low-liquidity assets are prone to price swings.
Central bank interest rate adjustments – Rate hikes or cuts by central banks can impact investor appetite for risk assets, including crypto.
Overall supply and demand – Limited-supply assets (e.g., Bitcoin) often experience price surges with high demand, while excessive token issuance can lead to devaluation.
Cyber-attacks and blockchain security – Hacks or vulnerabilities in blockchain protocols can erode trust, leading to rapid price declines.
There is no guarantee of profit, and investors can lose all their invested funds if market conditions shift.
2. Stablecoins & Their Risks
Asset-backed stablecoins (e.g., USDC, USDT) are pegged to fiat currency and backed by reserves.
Algorithmic stablecoins rely on supply-and-demand mechanisms but can fail to maintain their peg, leading to instability.
Even stablecoins face risks related to issuer credibility, reserve transparency, and regulatory changes.
3. Security & Custody Risks
Securing digital assets is a shared responsibility between the crypto exchange (who may also act as the custodian), the custodian, and the account holder.
Crypto exchanges provide custodial wallets, meaning they manage the security of users' assets, but users remain responsible for following best security practices, such as enabling two-factor authentication (2FA) and securing passwords.
Custodians hold and protect assets on behalf of users, implementing cold storage solutions and security controls to reduce risks of unauthorized access.
Users (account holders) should be aware that they bear responsibility for securing access to their accounts, avoiding phishing scams, and safely storing private keys.
Regulators, including the Monetary Authority of Singapore (MAS), supervise crypto service providers but do not provide direct security guarantees for individual assets.
Security risks include hacking, phishing attacks, insider threats, and platform outages, which can lead to the loss or freezing of assets.
Using hardware wallets or non-custodial solutions offers users greater control over their crypto but requires them to securely store their private keys.
4. Regulation & Consumer Protection
Cryptocurrency regulations vary by country, and digital assets do not have the same legal protections as traditional bank deposits.
The Monetary Authority of Singapore (MAS) supervises crypto services but does not provide financial guarantees or compensation schemes for financial losses.
If a cryptocurrency platform becomes insolvent, recovering assets may be difficult or impossible due to the lack of industry-wide investor protection schemes.
Wirex users retain beneficial ownership of their cryptoassets, but in the event of insolvency, withdrawing funds could face significant challenges.
Unlike traditional banks, there is no mandatory compensation scheme to cover losses from crypto investments. It’s crucial to assess platform security and financial stability before engaging in transactions.
5. Investment Strategies & Risk Mitigation
Diversification (investing in multiple asset types) reduces exposure to a single market failure.
Investing through a licensed or regulated exchange (such as those licensed by MAS in Singapore) is the safest approach, ensuring compliance with local laws and investor protections.
Avoid trading based on hype, social media trends, or unverified recommendations from influencers or friends.
Be cautious of offshore investment products offering high returns—these can be scams or high-risk ventures without regulatory oversight.
Be cautious of market speculation, social media hype, and promises of guaranteed returns.
6. Liquidity Risks & Selling Challenges
Liquidity refers to how easily a cryptoasset can be converted into cash or another asset without significantly affecting its price.
Measuring liquidity involves examining trade volume over time and the bid-ask spread on an exchange. Higher trade volume and smaller spreads indicate better liquidity.
Avoid relying on social media influencers, personal recommendations, or high-yield promises as indicators of liquidity.
Low liquidity can make it difficult to sell crypto quickly also impacting the price.
Platform outages, cyber-attacks, or security breaches may temporarily restrict access to assets.
Some exchanges may suspend withdrawals or trading during extreme market conditions, further affecting liquidity.
By understanding these key topics, you will be better prepared for the Risk Awareness Survey and more equipped to make informed decisions regarding cryptocurrency investments.
For further clarification, please review the external educational materials linked above