• Ireland’s Central Bank governor, Gabriel Makhlouf, has urged lawmakers to ban crypto advertisements.
• The Central Bank has called crypto assets „Ponzi schemes“ and believes they lack underlying value.
• Makhlouf believes that EU regulations on stablecoins will provide “guardrails” for the crypto market.
Ireland’s Central Bank is taking a hard stance on the regulation of crypto assets, as its governor Gabriel Makhlouf has urged lawmakers to ban crypto advertisements. Makhlouf has quite a dim view on crypto, labeling them „Ponzi schemes“ and believing them to lack underlying value. This could be a problem for retail customers, as the Central Bank fears that these assets pose a risk to the economy due to their low financial stability.
To mitigate the risk posed by crypto, Makhlouf believes that regulations from the European Union (EU) on stablecoins can provide “guardrails” for the crypto market. As a member of the European Central Bank’s governing council, Makhlouf has called for regulations that could protect consumers from the potential losses associated with investing in crypto.
Makhlouf has specifically voiced concerns about crypto advertisements targeting young adults. He believes that if these advertisements are banned, it could prevent potential losses to investors who lack the knowledge and experience to properly assess the risks associated with investing in crypto. The Central Bank governor has also noted that most tokens are not backed by any other assets, making them a riskier investment than traditional assets.
The EU is currently in the process of establishing regulations for stablecoins, which could provide much needed clarity for investors. These regulations are expected to cover areas such as consumer protection, cybersecurity, and anti-money laundering. The regulations could also include guidelines on the governance of stablecoins and the financial stability of the projects.
The Central Bank of Ireland is monitoring developments in the crypto space closely, and is calling for increased regulatory oversight. If the EU is successful in establishing well-rounded regulations for stablecoins, it could bring much-needed stability to the crypto market. Ultimately, this could lead to more investor confidence, and potentially more growth in the space.