The Central Bank has issued a warning on the risks of investing in crypto assets, as part of a European-wide awareness campaign.
Potential investors are being warned that crypto assets are highly risky and speculative and may not be suitable for retail customers.
The Central Bank says people need to be aware of the 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, Director General of Financial Conduct at the Central Bank.
“While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk,” Ms Rowland cautioned.
“Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest. Do the promised fast or high returns seem too good to be true?” she added.
Consumers are being warned that if things go wrong with a crypto asset investment, they may not have the same protections as a regulated product.
The Central Bank has published an explainer for consumers on cryptocurrencies.
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