Central bank governor calls for ban on crypto ads targeting young adults: Ireland

The amount of technical mathematical algorithms it takes to solve and code for one block is tough.

It is no surprise that complex coding is a major drive for youth’s interest in cryptocurrency. The naivety of the youth also leads to the volatile nature of cryptocurrency, leading to immense price fluctuations.

While you can influence ample youth to invest in one cryptocurrency, a minor disbalance can convince them to liquidate. No wonder, leading cryptocurrency markets mostly target the youth for their crypto campaigns.

Dublin: Recently, Ireland’s government has decided to ban crypto advertisements that target the youth.

Governor of the central bank (Ireland), Gabriel Makhlouf said that the level of crypto ads pointing to young adults is uncomfortable. Being a long-time critic of crypto assets, he speaks in the support of legislation that would lead to the ban on crypto advertisements projected on young people.

Makhlouf said that the recently made regulations by the EU will provide the necessary guard to stablecoins.

He explains, that cryptocurrencies pose minimal risk to financial stability, but can have a dominant effect on retail customers.

He 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 unbacked, are essentially gambling. When you gamble you can win, but most of the time when you gamble, you’re actually losing.”

As most tokens are not backed by stable fiat currencies or other assets, crypto advertisements should get banned.

This was the second warning from the Irish Central Bank about misleading crypto advertisements. In March 2022, the bank issued a warning emphasizing the speculative and risky nature of digital assets, and them not being suitable for retail customers.

MiCA Development progress:

The EU has recently introduced MiCA( Markets in Crypto Assets) to establish synchronized rules for crypto assets applicable on the EU level.

By increasing the protection and financial stability of investors and consumers, the regulation will promote the use of crypto assets and further innovation in the market.

The regulation covers three kinds of crypto assets called electronic money tokens(EMT), asset-referred tokens (ART),  and other assets not covered under existing EU Law.

The MiCA legislation was passed in October 2020 after two years of its introduction in September 2020. In November, the members of the EU were to vote but it got postponed till February 2023. The EU has recently announced another delay on the final vote till April due to technical issues.

To be particular, the state government union of 27 members has decided to prorogue the deciding vote on the anticipated crypto ruleset as the 400-page legal guiding document cannot get translated into all Union’s official languages. This is mandatory according to the EU regulations that require publishing them in all 24 languages.



, ,