- Makhlouf allegedly urged banning cryptocurrency advertising to minors.
- The Central Bank of Ireland published a consumer advisory in March 2022.
Some governing bodies throughout the globe are planning to implement regulations on crypto advertising to protect the public from being misled. The head of Ireland’s central bank does not think highly of cryptocurrencies.
On Wednesday, Bloomberg reported that Irish Central Bank governor Gabriel Makhlouf told legislators that the bank is “very concerned” about the dangers faced by retail consumers who invest in “unbacked” cryptocurrencies.
Crypto Linked to Gambling
Even though Makhlouf said cryptocurrencies had “no social value whatsoever.” He eventually became more open to the idea of ordinary people buying cryptocurrency. According to Bloomberg, Makhlouf added, “When you gamble, you can win, but most of the time when you gamble, you’re actually losing.”
Makhlouf stated:
“Unbacked crypto is essentially a Ponzi scheme. People who put their money into unbacked crypto – and most of the significant stock of crypto out there is essentially unbacked – they are essentially gambling.”
Cryptocurrency poses more of a threat to individual investors, especially younger ones. Then it does to the financial system as a whole, according to Central Bank of Ireland Governor Philip Lane Makhlouf. Makhlouf allegedly urged banning cryptocurrency advertising to minors if legislators can find a method to do so in order to safeguard investors.
The Central Bank of Ireland has previously issued similar warnings about the perils of crypto-related advertising. The Central Bank of Ireland published a consumer advisory in March 2022. Cautioning people against “misleading” advertisements that encourage cryptocurrency investments.
There have been disagreements between the UK’s Advertising Standards Authority (ASA) and cryptocurrency companies like crypto.com about deceptive advertising. The government of the United Kingdom is now considering new, sweeping laws.
