The Director General of Ireland’s Central Bank for Financial Conduct is the latest official to point out bitcoin’s issues (B T c) and the cryptocurrency industry after a major market sell-off.
The growing popularity of cryptocurrencies like bitcoin is “of great concern”, warns Derville Roland of the Central Bank of Ireland, Bloomberg Reports Monday.
“Crypto assets are fairly speculative, erratic investments,” and investors “really need to know they can lose that entire investment,” Rowland said, adding that crypto markets shed nearly $ 1 trillion in just a few days. One of the biggest historical crypto sell-offs.
Roland’s approach to crypto is set to contribute to the global regulation of space as an official will Capture In July, as Chairperson of the Investment Management Standing Committee of the European Securities and Markets Authority. Earlier this year, the Financial Authority Outlined similar concerns around crypto, Stating that these types of assets are not regulated and there are significant risks to investors due to its highly volatile nature.
One of the top officials of Ireland’s central bank, Roland is known for his stringent stance on financial breaches, as well as being involved in major enforcement investigations. In March, the central bank fined Ireland’s largest stockbroker, Dewey, for violating market rules, eventually prompting the firm to offer itself for sale.
In addition to pointing fingers at crypto, Roland reportedly also underscored the problem of “gamification” of stock investments, referring to coordinated trading through social media platforms, including Reddit-driven. GameStop Short Squeeze. The official said that ESMA and the Central Bank of Ireland have discussed the issue. While there is no timeline for any new rules yet, the regulations “should be technology neutral, so that you are not getting better protection in older paper-based processes, then you are in more online processes,” Roland said said.
Several central bank officials have recently raised the alarm over crypto investments. In early May – before the downturn in the crypto markets – Bank of England Governor Andrew Bailey warned that Cryptocurrencies have no intrinsic value And people should buy them only when they are ready to lose their money. Last week, Bank of Japan Governor Haruhiko Kuroda pulled bitcoin, Arguing that much of the trade was speculative.