TL; DR Breakdown
Bank of Ireland warns traders of the risk of crypto tradingThe bank against misguided crypto adsCrypto firms continue to enter Ireland despite warnings
The acceptance of crypto trading activities has not been uniform across the world despite mainstream adoption. This is because some countries are still wary of the genuineness of that sector of the financial market. The Bank of Ireland has warned traders against a mammoth of risks involved with trading digital assets. In addition to that, the bank has also asked that traders shun all crypto ads, citing that they are misleading.
Bank of Ireland warns against crypto ads
In a notice that was shared on Tuesday, the Bank of Ireland mentioned an integral part of an event organized by several authorities across Europe. The bank mentioned the so many risks in crypto trading to usual retail traders while giving a little insight into the advertisements. The bank said that traders should not fall for the adverts as influencers across social media are being paid to sweet talk the traders.
According to the financial conduct director general of the bank, there has been an immense rise in the number of ads related to crypto activities in the last few weeks across the country. Derville Rowland, the DG of conducts, pointed out that traders should only trade with cash they can afford to forgo in a case of immense loss. He also stated that should things go sideways with crypto investments, there are no laws to protect traders in the country.
Crypto firms continue to enter Ireland despite warnings
This Bank of Ireland warning is coming off the back of respective warnings from the international committee of regulators and central banks. There has also been news of governments worldwide taking down several influencers advertising digital assets across different social platforms. Back in January, Spain announced a sanction on firms for floating crypto advertisements, including those done via social media influencers.
The United Kingdom regulator has also warned firms about crypto advertisements. There are still several pending cases of influencers being linked to scam tokens in the United States. A recent one is the case of Kim Kardashian’s association with EMAX, which sent the price of the token into the heavens before losing about 90% of its value. At the same time, there has been one famous person warning traders against these types of investments.
Despite huge warnings from the bank of Ireland and the country’s government, crypto firms are still setting up shops across the country. One typical case is Gemini, who was recently granted a license of operation after it entered the country last year. Binance and Kraken are also other companies that have set up a branch in the country.