The Irish Central Bank’s chief financial officer is the latest official to point out the problems of Bitcoin (BTC) and the cryptocurrency industry after a big market sale.
The growing popularity of cryptocurrencies like Bitcoin is “very worrying”Irish central bank’s Derville Rowland warned Monday, Bloomberg reports.
“Crypto assets are quite a speculative and unregulated investment” and investors “should be aware that they could lose the entirety of that investment”. Rowland stated after the cryptocurrency markets lost nearly $ 1 trillion in just a few days in what is one of the largest cryptocurrency sales of all time.
Rowland’s stance on cryptocurrencies will help regulate this sector globally. As the official will take over the presidency of the permanent investment management committee of the European Securities and Markets Authority in July. Earlier this year, the Treasury Authority raised the same concerns about cryptocurrencies, noting that these types of assets are unregulated and pose a significant risk to investors. due to its very volatile nature.
Rowland, one of the top executives at the Central Bank of Ireland, is known for her tough stance on financial violations as well as her involvement in key enforcement investigations.. In March, the central bank fined Ireland’s largest stockbroker, Davy, for violating market rules, which eventually forced the company to sell.
In addition to pointing out cryptocurrencies, Rowland addressed the issue of “gamification” of stock investments, referring to coordinated trading across social media platforms, including the GameStop Short Squeeze. powered by Reddit. The official said ESMA and the Central Bank of Ireland had discussions on the matter. Although there is still no timetable for the new rules, Regulations should be “technologically neutral so that older paper-based processes do not provide better protection than online processes”.Rowland said.
Several central bank officials recently raised the alarm over cryptocurrency investments. In early May, before the cryptocurrency markets collapse, the Governor of the Bank of England Andrew Bailey warned that cryptocurrencies have no intrinsic value and that people should only buy them when they are willing to lose their money.. Last week, the Governor of the Bank of Japan, Haruhiko Kuroda, hit Bitcoin, arguing that most of the trade is speculative.
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