Central Bank of Ireland Warns Against Ponzi Scheme Bitcoin
Bitcoin and other unbacked cryptocurrencies are “Ponzi schemes” and should be treated with skepticism, according to Irelands Central Bank governor Gabriel Makhlouf. He has also suggested that regulators may crack down on crypto influencers who promote crypto products online without disclosing their related financial interests. Ireland Against Unbacked Crypto In a blog post published on the Central Banks website, Makhlouf stated that the purchase of cryptocurrencies is similar to purchasing a lottery ticket: “” He added that such products should not be described as investments and that the Central Bank is concerned about the potential for consumer harm. “In the case of crypto, this market is developing at pace and the risks to consumers and investors are rising, particularly as these products remain unregulated”. Criticizing the aggressive advertising of cryptocurrencies, he emphasized the need for transparency in the promotion of crypto products and said that influencers should disclose their related financial interests. Recently, on April 18, 2023, the Central Bank of Ireland granted VASP authorization to Payward Europe Solutions, an Irish affiliate of Kraken with its headquarters in Dublin. Binance and Coinbase expanded in the country last year in October and December respectively. There is a case-by-case determination of whether a cryptocurrency can be regulated in Ireland.