The Irish Central Bank is going to extend cryptocurrency restrictions to all types of funds that are regulated by the rules of the European Commission and the European Union.
The Central Bank and Financial Services Authority of Ireland (BCUSAE) announced the restrictions in its annual Securities Markets Risk Report. Part of the report is dedicated to the threats associated with the cryptocurrency market. The report states that the regulator is very likely to prevent retail investors from trading in the cryptocurrency market.
The Central Bank promises to take “adequate measures” to protect unqualified investors from threats. There are, say BCUSAE, “specific risks associated with crypto assets” and “the possibility that proper risk assessment may be difficult for a retail investor without a sufficiently high level of knowledge.”
The regulator warns that its position extends not only to direct transactions with crypto assets, but also to Collective Investment Funds in Transferable Securities (UCITS) – organizations with a minimum asset size of 1.25 million euros that help individuals collectively invest in a variety of assets and are regulated European Union. In addition, the ban is likely to be extended to investment funds that are not regulated by the UCITS directive: hedge funds, private equity funds, real estate funds.
The Irish authorities are taking a tough stance on the regulation of cryptocurrencies. Recently, the Advertising Standards Authority of Ireland (ASAI), which monitors cryptocurrency advertising in the country, began investigating complaints that crypto projects were misleading investors. BCUSAE has issued a number of warnings to crypto investors in recent years. The head of the Central Bank said that consumers who are considering investing in a product should carefully consider their goals, level of experience and risk appetite.
However, in October, the CEO of the Binance cryptocurrency exchange, Changpeng Zhao, announced that the company will open several headquarters, and one of them will be located in Ireland. At the same time, the Bank of New York (BNY Mellon), which opened a branch in Ireland, urged the government of the country not to wait for the EU to present guidance on the regulation of crypto assets, but to start developing its own rules.
Source: Bits
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