Unsecured digital assets are more like a “Ponzi scheme than an investment” and pose risks that consumers need to be protected from. About it declared Irish central bank governor Gabriel Makhlouf.
In his opinion, there is an “urgent need for political action” to achieve a “tough” regulatory regime in order to preserve the financial security of citizens.
“A regulatory regime that properly safeguards the market from fraud, manipulation and money laundering, and ensures financial stability, is an important next step. As authorities, we must ensure a level playing field for business in the EU and consumer protection,” Makhlouf wrote.
He added that the Irish Central Bank distinguishes between secured and unsecured cryptocurrencies. The agency is “open to the potential” of the former but skeptical of the latter, the official explained.
Makhlouf believes that unsecured digital assets are not properly regulated, and their purchase can lead to serious losses.
“Investing in these products is like buying a lottery ticket: you can win, but not likely. So don’t call it an investment. “Ponzi scheme” gives a more precise definition of cryptocurrencies,” he said.
Recall, on April 20, the European Parliament approved a bill to regulate the crypto assets market. MiCA. The new rules will take effect from 2024.
In March, former Belgian finance minister and current member of the European Parliament Johan van Overtveldt called on the authorities to ban cryptocurrencies amid the banking crisis.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Unsecured digital assets are more like a “Ponzi scheme than an investment” and pose risks that consumers need to be protected from. About it declared Irish central bank governor Gabriel Makhlouf.
In his opinion, there is an “urgent need for political action” to achieve a “tough” regulatory regime in order to preserve the financial security of citizens.
“A regulatory regime that properly safeguards the market from fraud, manipulation and money laundering, and ensures financial stability, is an important next step. As authorities, we must ensure a level playing field for business in the EU and consumer protection,” Makhlouf wrote.
He added that the Irish Central Bank distinguishes between secured and unsecured cryptocurrencies. The agency is “open to the potential” of the former but skeptical of the latter, the official explained.
Makhlouf believes that unsecured digital assets are not properly regulated, and their purchase can lead to serious losses.
“Investing in these products is like buying a lottery ticket: you can win, but not likely. So don’t call it an investment. “Ponzi scheme” gives a more precise definition of cryptocurrencies,” he said.
Recall, on April 20, the European Parliament approved a bill to regulate the crypto assets market. MiCA. The new rules will take effect from 2024.
In March, former Belgian finance minister and current member of the European Parliament Johan van Overtveldt called on the authorities to ban cryptocurrencies amid the banking crisis.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!