22 March 2022
By Elaine Murphy
TLDR: Some people make money on bitcoin – others lose – like any investment, it can be fun as long as you understand the risks
The Irish Central Bank has today issued a fresh warning on the risks of investing in crypto assets, as part of a European-wide campaign by the European Supervisory Authorities.
The Central Bank again emphasised that crypto assets are highly risky and speculative, and may not be suitable for retail customers. In particular people need to be alert to the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.
Derville Rowland, Director General Financial Conduct said: “In Ireland and across the EU we are seeing increasing levels of advertising and aggressive promotion of crypto asset investments.
“While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk.
“Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest. Do the promised fast or high returns seem too good to be true?
“People should also be aware that if things go wrong, you do not have the protections you would have if you invested in a regulated product.”
The Central Bank has published a plain English explainer for consumers on cryptocurrencies.