Ireland is a country that is often likened to a crypto hub. Most of its citizens are also among those who pay attention and interest in crypto. Even so the Central Bank has not previously stated their stance clearly on crypto until today.
Recent reports state the Central Bank of Ireland has stated that they will not allow retail Investment Funds to obtain direct or indirect exposure to cryptocurrencies. The central bank states that cryptocurrencies have a high risk.
Nevertheless, the Central Bank considers crypto suitable for wholesale or professional investors who can properly weigh the risks of the crypto market itself.
Ireland has previously accepted crypto in their country so much so that the world’s largest crypto exchange Binance plans to set up headquarters there. External risk is still not suitable for retail investors says the Central Bank of Ireland. A statement on this latest status is made in the second annual Securities Market Risk Survey Report of the Central Bank of Ireland.
The Bank states that currently the risks inherent in the crypto market will not allow the fund to gain direct or indirect exposure to crypto.
“Currently, although such assets may be suitable for wholesale or professional investors, the Central Bank will most likely not approve UCITS or Retail Investor AIFs that recommend any exposure (either direct or indirect) to crypto assets,” the report said.
Ireland has become one of the more accepting countries of crypto in their policies. In the report, the bank noted that the main constraints of the cryptocurrency industry are largely unregulated. However, it recognizes that cryptocurrency assets are one of the fastest growing innovations in the national securities market.
