Crypto ads are now making headlines in Ireland, following the release of an advertising regulatory framework recently compiled by the UK Treasury.
The Advertising Standards Authority of Ireland (ASAI) has growing concerns about crypto ads. It has received four complaints regarding advertisements since 2019. Two Floki Inu ads posted on the side of Dublin buses sparked concern. The phrase in the advertisement is “Missed Doge? Get Floki. Similar ads recently appeared across London. “Doge” is a reference to “Dogecoin”, the first meme coin (with no intrinsic value), created in 2013 as a joke. The Shiba Inu and then the Floki Inu followed the Doge. An ASAI spokesperson said the four advertisements are being reviewed. “We know there is growing concern about advertising of cryptocurrencies in other jurisdictions, and we are monitoring the development,” he said.
These complaints have attracted the attention of Irish authorities at a time when UK regulators have set guidelines to reduce deceptive advertisements. All crypto advertising in the UK will be subject to regulations that apply to shares and insurance.
Irish Central Bank Governor Not Worried Right Now
Digital assets in Ireland are not recognized by the Central Bank, as they are not the product of regulated financial firms. The central bank has warned consumers against investing in cryptocurrencies in recent years. Now, in response to a growing list of complaints, the bank said, “We reiterate those warnings.”
“The central bank reflects the pace at which the crypto ecosystem is growing, and the central bank continues to identify and closely monitor the risks associated with crypto assets,” a spokesperson said.
In a recent blog post, Central Bank Governor Gabriel Makhlouf, crypto does not pose a threat to financial stability nationally and globally. Behind the increased popularity, however, “could be harmed by their volatility, which could have implications for financial stability.” Makhlouf drew a comparison between the current excitement surrounding BTC and ETH and the Dutch tulip bubble, known as the “tulip frenzy” in the 1600s.
EU says risks not well defined
Concerns are spreading across the European Union that crypto advertising campaigns are not disclosing the significant risks associated with digital assets. The body is busy creating a financial regulatory framework for cryptocurrencies, including the market in the Crypto Assets Framework (MiCA), due for ratification later this year. MICA includes the introduction of a licensing regime for service providers.
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