Crypto currency warning from Central Bank over misleading advertising

The Central Bank has issued a fresh warning on the risks of investing in crypto assets, in the face of "aggressive promotion" of such currencies.

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, the Central Bank said.

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," Ms Rowland said. 

The European Securities and Markets Authority (ESMA) is an independent EU Authority that contributes to safeguarding the stability of the EU's financial system by enhancing the protection of investors and promoting stable and orderly financial markets.