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Central Bank of Ireland Warns against Crypto Investments

Overview:

  • Director – General Derville Rowland sees the current development as ” very worrying
  • According to Rowland, investors could lose all their invested capital in no time
  • The volatile crypto market is not subject to regulation, which has long been a thorn in the side of the European Securities and Markets Authority (ESMA

Once again, a state institution comments on the current development in the crypto market. The Central Bank of Ireland’s Director General of Financial Behaviour, Derville Rowland, agrees with investors on the loss of all their investments in crypto assets in an interview. According to Rowland, the current Bitcoin crash is “very worrying” and once again shows that the volatile market would need regulation. The trigger of the latest warning is likely to be the biggest sell-off the crypto market has ever seen. The overall market lost about one trillion US dollars as a result.

Hardliner Rowland takes over the chairmanship of ESMA

Rowland’s opinion on the crypto market will influence the course regarding regulations at least across Europe. The hardline Director – General for Financial Conduct at the Central Bank of Ireland is to chair the Standing Committee on Investment Management of the European Securities and Markets Authority from July this year. In this position, she has a significant influence on the way the authority will deal with cryptocurrencies in the future.

Hardliner Rowland Voices Concerns over Bitcoin Crash
Hardliner Rowland Voices Concerns over Recent Bitcoin Crash – Source rte

ESMA has expressed similar concerns about the crypto issue in the past. According to the authority, investors are taking enormous risks with cryptocurrencies due to the extremely high volatility of the unregulated market. Calls for regulation from authorities such as ESMA are growing louder. Investor interest in alternative investment options such as cryptocurrencies is growing inexorably. More and more people want to buy Bitcoin and trade the cryptocurrency.

Crypto Regulations under Derville Rowland?

With Rowland at the helm, ESMA may have picked the right woman to push crypto regulations further. As Director-General at the Central Bank of Ireland, Rowland is not known for her squeamish approach. This has recently been felt by Ireland’s largest stockbroker Davy. The company was fined heavily for violating market rules. To such a significant extent that Davy prompted himself to offer for sale.

But Rowland is not only a thorn in the side of cryptocurrencies. The hardliner also has the gamification of stock trading in her sights. In the course of the interview with Bloomberg, she tore at the short squeeze of GameStop stock, which was largely driven by Reddit.

Bitcoin Crash Causes Downward Trend in the Crypto Market

The current price developments may have actually cost one or the other investor money. Especially with regard to the fact that the forecasts at the beginning of the year were still on an absolute bull year, more and more people and especially inexperienced crypto investors have invested a lot of money. Of course, the current Bitcoin price is not the downfall and the price should recover again, but it shows again how volatile the market is and that you have to deal intensively with the topic of cryptocurrencies before investing.

At the current time, BTC is around $ 36,200, according to data from CoinMarketCap.

Bitcoin Crash provides prices at around 36 thousand US dollars
The Bitcoin price is around 36 thousand US dollars – source CoinMarketCap

That the price reaches new records one year after the last halving event has not yet occurred. Many such prophecies and factors are just for inexperienced investors to buy without questioning. One cannot speak of investing, but only of speculating.

Bottom line: will the unregulated crypto market be regulated soon?

In the crypto space, all guns are usually raised when it comes to regulation. Because it is precisely the non-existent state intervention that makes cryptocurrencies so special. On the other side are the tax authorities, who have made it their business to protect and inform investors. On the one hand from fraud, but on the other hand from the loss of money due to poorly made investment decisions. Of course, the latter are basically the investor’s own responsibility!

Whether and how the market will be intervened from the outside in the future will become clear. In any case, there is an active effort on the part of the authorities responsible for financial supervision.

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