The Central Bank of Ireland has released a February report on the “Security Markets Risk Outlook”, in which it highlights key areas of risk for regulated financial service providers.
Down on page 23 there is a section on new products that mentions crypto assets. Echoing the sentiment of most central banks, the report noted that cryptocurrencies “are likely to be highly risky and speculative.”
The bank said consumers should be alert to the high risks of buying and/or holding these devices, “including the possibility of losing all their investments”, as most are unregulated in the EU.
Increased interest in crypto
The Bank of Ireland said it has seen an increase in queries for undertakings for collective investments in crypto assets such as transferable securities (UCITs) or retail alternative investment funds (AIFs). However, it was unlikely for retail investors to approve anything anytime soon.
“At the moment, while such assets may be suitable for wholesale or professional investors, central bank UCITS or retail investors AIF are highly unlikely to offer any exposure (either direct or indirect) to crypto-assets.”
The central bank did not rule out all crypto products, suggesting it may allow exchange-traded products for institutional investors; However, it wants to keep it away from retail.
Industry analyst Colin Wu pointed out that some of the major players in the industry, such as Binance, have set up shop in Ireland.
The Central Bank of Ireland said that it is “highly unlikely” that retail investors will be allowed to own crypto assets. Binance has previously registered several companies in Ireland and there are also rumors of preparations to build a headquarters there. https://t.co/2kyqCkNpnJ
— Wu Blockchain (@WuBlockchain) 8 February 2022
in November, cryptopotato revealed that Binance was reportedly setting up a global headquarters in Ireland. In August, further rumors surfaced that PayPal was setting up a cryptocurrency team on the Emerald Isle.
If the Bank of Ireland cracks down on crypto trading for retail, Binance and its brethren may need to look elsewhere for their base of operations.
hate digital assets
Central banks hate crypto because they cannot control it. Their job is primarily to control monetary policy and the economy, which has an impact on the population, whether negative or positive, that the central bank owns.
The crypto challenge is that as designed it puts monetary control back in the hands of the people, not the bankers or politicians who certainly don’t want to let the public get their hands on it.
In recent weeks, central banks in Russia, Pakistan and Thailand have criticized crypto, with some proposing a complete ban.
ft. featured image courtesy of
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