The Central Bank of Ireland Won’t Allow Retail Funds to Hold Crypto

The Central Bank of Ireland Won't Allow Retail Funds to Hold Crypto

It is highly unlikely that the Central Bank of Ireland will allow retail mutual funds to hold crypto assets and limit exposure of retail mutual funds to special purpose acquisition companies.

The Central Bank of Ireland Believes There Are Many Unanswered Questions About Crypto 

In an interview on February 8, Patricia Dunne, Director of Securities and Market Regulation, stated that there are so many unanswered questions about crypto asset custody, money laundering, and even just volatility and liquidity and there are too many problems with retail direct investment.

Dunne’s comments reinforce regulators’ repeated warnings about overall crypto-asset growth. Central bank governor Gabriel Makhlouf warned investors they should be prepared to lose all their investments, while another senior official called it “very worrying”.

She also warned against special-purpose acquisition companies, which she says have problems with transparency and sophistication for retail investors. Regulators limit SPAC investments to 10% of the net asset value of retail mutual funds. The limit could be “forever,” she said.

Her comments came as the central bank released its 2022 risk outlook for the securities market. The report warns companies against corporate misconduct, sustainable finance and greenwashing, responsible corporate governance, conflicts of interest, financial innovation, online money security and the use of leverage.

The Central Bank in a report stated that the growth of sustainable financial markets has increased the risk that some financial products are not as sustainable as claimed. It added that when investors are misled by insufficient or incorrect disclosures into buying products that do not meet their sustainability expectations, it will harm the sustainable finance industry, which is critical to the transition to green economic activity.

Companies that relocated from the UK to Ireland following Brexit are now expanding their operations. Dunne stated that the daily transaction report to the central bank showed transaction volume more than doubled in 2021.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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