The reports of India Today crypto news state that times might be tough for Crypto advertisements in both UK and Ireland. Just a few days back, the UK was in the news regarding the actions the nation had taken against the false advertising in the community of crypto.
It seems that Ireland has decided to follow the exact same path as the central bank of Ireland has issued a warning to the people, telling them to be mindful of all the risks and challenges that are associated with different misleading advertisements.
All the consumers have been warned by the Central Bank of Ireland about the risks of investments in cryptocurrency. The central bank also warned the consumers about the different misleading advertisements of crypto including the ones that are actually pushed on the social media front by celebrities.
The notice that came out on Tuesday had all the details that the central bank of Ireland wanted to convey to the consumers. The central bank also said that this warning was actually a part of a very important campaign that was being organized by the ESA or the European Supervisory Authorities.
The ESA is made up of the European Securities & Markets Authority, the European Insurance & Occupational Pensions Authority, and the European Banking Authority. Ireland’s central bank made the statement that all the different cryptocurrencies are actually pretty risky and speculative. Hence, they can be a huge risk for retail investors.
The bank asked the people and consumers of crypto to be mindful of the different “risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.”
“In Ireland and across the EU we are seeing increasing levels of advertising and aggressive promotion of crypto-asset investments,” said Derville Rowland, the central bank’s director general of financial conduct. “Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest People should also be aware that if things go wrong, you do not have the protection you would have if you invested in a regulated product.”
Central Bank Warns Against Crypto Advertisements in Ireland
The warning that has been provided by the Central Bank of Ireland actually echoes the different warnings that the lawmakers and global regulators have given to different influencers that are responsible for peddling cryptocurrencies all over the world.
Such advertisements and peddling of cryptocurrency could be one of the most important reasons why different nations are trying to put the regulatory framework for control over cryptocurrency. In January, the Spanish government announced regulations for advertisements on crypto investments and services, which specifically included “products or services promoted via influencers.”
The United Kingdom’s Advertising Standards Authority has also repeatedly warned crypto firms or alleged violations for advertisements dealing in digital assets.
In the United States, celebrities and influencers were associated with many of the alleged initial coin offering scams from 2018. Kim Kardashian’s Instagram account posted a story shilling the ERC-20 token EthereumMax (EMAX) in June 2021, causing the price to spike before falling more than 99% and leaving many retail investors in the red.
At least one American celebrity, actor Ben McKenzie, has used his platform to push back against these types of high-profile endorsements.
According to India Today crypto news, despite having repeated warnings over crypto investments and advertisements, some firms have set up operations in Ireland. After opening the doors to its Dublin office in early 2021, crypto exchange Gemini received a license to provide electronic money services in the country. Binance established three subsidiaries in Ireland in September 2021, while crypto firms Ripple and Kraken chose the nation as the base to launch their European operations.
Also Read: In Ireland: Gemini has been Granted a License to Provide Electronic Money Facilities
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