Advertisment

Ireland's Central Bank Governor Calls Bitcoin a "Ponzi Scheme" and Embraces EU Crypto Regulation

author-image
BNN Correspondents
Updated On
New Update

The governor of the Central Bank of Ireland, Gabriel Makhlouf, has recently slammed Bitcoin as a "Ponzi scheme" in a blog post on crypto regulation. While the Irish regulator has been cautious about the crypto industry, it welcomes the European Union's most comprehensive crypto regulatory framework, the Markets in Crypto Assets Regulation (MiCA).

Advertisment

The Central Bank of Ireland's Caution on Crypto

Makhlouf acknowledged the potential of backed crypto, including Electronic Money Tokens (EMTs) and Asset Reference Tokens (ARTs) under the EU's new regulatory framework. However, the bank is cautious about unbacked crypto, which he likened to purchasing a lottery ticket.

According to the Central Bank of Ireland, the crypto market must be regulated like other financial markets. Therefore, the bank is imposing certain rules on the treatment of user funds, disclosures, risk management, governance, and information exchange.

Ireland's Central Bank Welcomes EU's MiCA Legislation

The Central Bank of Ireland applauded the recently approved Markets in Crypto Assets Regulation (MiCA) – the EU's most comprehensive crypto regulatory framework. The legislation, which will come into effect in 2024, aims to bring legal certainty to the crypto industry by establishing clear rules for crypto issuers, service providers, and marketplaces.

MiCA requires crypto companies to obtain authorization from national regulators, provide whitepapers for each product they offer, disclose all information on fees and charges, and maintain a minimum level of capital to protect investors.

Ireland crypto Bitcoin CentralBank MiCA
Advertisment
Advertisment