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HomeLaw & PoliticsIt’s a No! From Central Bank of Ireland for crypto funds

It’s a No! From Central Bank of Ireland for crypto funds

Because individual crypto investors lack the knowledge to handle the high-risk asset class, the Central Bank of Ireland has stated that it is unlikely to sanction investment funds for them. Crypto assets are a new product offering in securities markets that is complex and a “possible threat to investor protection,” according to the Securities Markets Risk Outlook Report.

Although the bank received numerous inquiries for crypto-related Alternative Investment Funds (AIFs) last year, it is currently unlikely to authorise an AIF for retail crypto investors.

A UCITS (Undertaking for the Collective Investment in Transferable Securities) is a regulatory framework used in the European Union (EU) to manage certain investments for sale across the EU.

Patricia Dunne, Ireland’s Director of Securities and Markets Supervision, said that there are “too many unanswered concerns around things like custody, money laundering, and even just volatility and liquidity” when it comes to retail crypto investing.

Do you think the Central Bank of Ireland is right in its stance? Comment below.

Kunal Krishan
Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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