Ireland's central bank has shown wariness with cryptocurrencies through public warnings to beware of cryptocurrency investments that come from false advertising. The central bank also mentioned that celebrities use their image and make an impact in the market.
The warning is part of a campaign organised by four European Watchdogs: the European Securities and Markets Authority, the European Banking Authority; European Occupational Insurance and Pensions Agency. Describing cryptocurrencies as "high risk and speculative," ireland's central bank warned retail investors and the general community to take note of the risks from misleading types of advertising, which come from celebrities receiving money and advertising electronic assets in the media.
Derville Rowland, the central bank's general manager of finance, said: "In Ireland and across the EU, the wave of advertising is increasing and encouraging investment in crypto assets. "You need to think about whether you can afford to lose all the money you invest before entering the cryptocurrency market."
Earlier, the warning of global regulators and legislative enforcement also issued warnings and cracked down on celebrities participating in promotion. In January, the Spanish government announced regulations on advertising, which fall under the scope of cryptocurrency investments and services, including the use of celebrities. The UK's Advertising Standards Authority has also repeatedly warned cryptocurrency companies or alleged breaches of digital asset business advertisements.
The impact of the celebrity shadow on the cryptocurrency market
Since 2018 in the United States, there have been many incidents that have severely affected the cryptocurrency market, involving celebrities. Kim Kardashian's Instagram account posted a story about the ERC20 token – Ethereum Max (EMAX) in June 2021, causing the price to spike before dropping more than 99% and leaving many retail investors in the red.
However, despite warnings about cryptocurrency investment and advertising, some companies still choose Ireland as their location of operations. Gemini Exchange opened its office in Dublin, Ireland in early 2021 having received a license to provide cryptocurrency services in the country.
Binance also established three subsidiaries in Ireland in September 2021. Cryptocurrency companies Ripple and Kraken also chose the country as the basis for launching their European operations.
